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Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?

To: TraderGreg who wrote (4167)	1/1/1998 4:57:00 PM
From: Dick Jaffe	Read Replies (2) \| Respond to of 11708

If you roll over an existing IRA into a Roth IRA, you must pay the tax on it's value in the year of the transfer. To my way of thinking, if you are investing in a low priced stock with a 10 or 20 bagger potential, you'll come out much further ahead using a Roth IRA with no tax liability when you cash out. Also, with a Roth, there is no compulsion to close it out after attaining age 70 1/2 thereby making it a great vehicle to pass a tax free inheritance on to your heirs. Think about it! A regular IRA only gives you a $2,000 deduction. If you keep it for 10 years and it's now worth 20X or $40,000, wouldn't you rather take that tax free rather than pay ordinary income tax rates of, say 28%, or $11,200 on it? The Roth is such a great deal, I can't believe Congress gave it to us. I would recommend that everyone grab one while it's available. They can always change their mind, you know, but they'd probably grandfather in those already established. Dick