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To: Sam2482 who wrote (2890)	1/19/1998 12:43:00 PM
From: Sandy J	Read Replies (2) \| Respond to of 42834

Vicki, I too have an established (20+ years) IRA that I was debating converting to a Roth IRA. I decided against converting for two reasons: 1) I hope that I will have a lower tax rate when I retire and start drawing out of my IRA and 2) it would take several years of double-digit gains in the stock market to make up the amount I would have to take out to pay the tax and I only have about 5 years left until I take up residence in the Land Of Critical Mass. Sandy J

To: Sam2482 who wrote (2890)	1/19/1998 1:17:00 PM
From: Investor2	Respond to of 42834

RE: "Does anyelse else know how they're going to play this yet?" I'm going to wait until the end of the year to decide on the Roth IRA conversion issue. By then, I will have a better handle on my current income tax liabilities. Also, I believe Congress will be "fine-tuning" the 1997 tax code over the next 11 months. Who knows what they will come up with. Best wishes, I2

To: Sam2482 who wrote (2890)	1/19/1998 1:22:00 PM
From: Mr. BSL	Respond to of 42834

Vicki, <Roth IRA> We have no idea what the tax laws will be twenty years from now. Based on the success of class warfare tactics, it's hard to imagine that someone who invests periodically over a working lifetime is not going to be taxed on it in one way or another at retirement - even if that person ponied up a huge chunk of change in 1998. Rich retirees (Over $35K income) are taxed on their Social Security benefits. I can't imagine "rich" retirees getting a pass on their Roth IRA's when they retire. Hope this helps duke60

To: Sam2482 who wrote (2890)	1/19/1998 1:42:00 PM
From: Bill Shepherd	Respond to of 42834

RE: Does anyelse else know how they're going to play this yet? I have just made the decision to convert my IRA to the ROTH-IRA. I may be short-sighted, but I really like the idea of PAYING NO TAXES on all earnings I can accumulate over the next 20 years or so. I suppose there is a risk that the politicos will invent another way of grabbing my money, but I'll take the chance. Since my IRA was funded with post-tax dollars, I won't get squeezed too hard on captal gains. BTW - if you elect to convert in 1998, you'll get several years to spread-out the gain (five years, I think.) This seems like a plus. Also, because you can pay the gain with "non-IRA" money, essentially, this is a way to increase funds in a tax-preferred (exempt, really) vehicle...another big plus. Here are a few "down" side observations, based on my research. (1) You can only convert if your AGI is less than $100K. Some creative tax planning may be required to meet this criteria. (The gain on converted funds, luckily, is exempt from AGI); (2) The conversion accout cannot receive contributions for 5 years (at least at Fidelity, where mine is). This means that for future years' contributions, you must open another Roth IRA account. This seems like a pain to me, but Fidelity assures me that there is no way around it. Anyway, that's my 2 cents. Good luck!

To: Sam2482 who wrote (2890)	1/19/1998 10:35:00 PM
From: Kirk ©	Respond to of 42834

I also have approximately ten years of gains in my old IRA that I don't want to pay taxes on yet. Does anyelse else know how they're going to play this yet? While on the stairmaster today, I read in the SF Chronicle that we are allowed to convert our nondeductable IRA contributions over to a ROTH IRA without paying anything now! It would seem that we can then leave the interest behind and pay taxes on it when we withdraw it. The good news that those of us that have been contributing after tax dollars for 10 yrs can move these funds into the Roth IRA without penalty or taxes. I think I will call Vanguard and give it a try...8-) regards Kirk out More on IRA's at suite101.com