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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Paul van Wijk who wrote (26843)	1/3/1998 2:42:00 PM
From: Gold Beach	Read Replies (1) \| Respond to of 176387

Paul: For 1998 we in the USA now have a 'Roth' IRA. This allows us to put in after tax money and never pay taxes on the gain which in the USA is normally considered ordinary income and does not even qualify as capital gain. The problem is to be able to put enough money into the Roth IRA to make it worthwhile. There are a number of ways to do it: 1. Convert over an old IRA which is doable if one is young and/or there are not a lot of gains involved. One has to pay ordinary income tax on gains before one can shift it over to a Roth IRA. 2. A married couple can put in up to $4,000 per year in a Roth IRA beginning in 1998 depending upon certain income restrictions. 3. A married couple can also put in up to $4,000 after tax money in an ordinary new IRA for 1997 and has up to April 15th to do it. After that they can convert it over to their Roth IRA. And this new IRA will have very little gain because it is so new. They just have to keep it separate from any existing IRA that has lots of gain. A Roth brokerage IRA could then be populated with all kinds of goodies including Dell, Cisco, etc. With compounding a young studley could make millions over his lifetime and never pay taxes. This is a powerful tool. I think all of us on the Dell thread should be looking at this opportunity. And we are never too old to utilize it as long as we are earning some sort of income. ---DO IT IN 98--- Comments are invited. Don