Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: katytrader who wrote (150636)	5/5/2011 10:32:33 AM
From: maverick61	Respond to of 206323

katytrader - I believe the loophole you are referring to is not one to avoid taxes on the conversion - but rather to avoid the early withdrawal penalty tax imposed on IRA's Basically, as the Roth law was originally written, people could convert their IRA to a ROTH and withdraw the whole thing the next day - and avoid the 10% penalty tax on early IRA withdrawals. That is what was subsequently corrected. Here is a good article on the history of Roths. You will note even the author concedes that there were revenue generating aspects of the conversions designed to benefit the government rothira.com Thanks Mav