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To: eddie r gammon who wrote (13386)	1/24/1998 2:11:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 18056

Eddie, there are a lot of limitations on these Roth roll over. I know that I for one will not be able to benefit from it. I estimate that about 5 million accounts will be converted but since these are from people with an AGI of 100,000 or less, the average size of the IRA converted will be closer to $50,000 or $12,500 additional taxable "income" for the revenuer to put his hand on. The average tax rate will probably around 20% so we are talking about $25 billion injection to the treasury. On the other hand, however, there are tax credits going to parents of college bound kids which could easily eat half of this, so the total impact would be about $12.5 billion. This is not large enough to cause a major decline in debt or a big surplus in our budget. We might, however have the first surplus in amny years. I hope they do not get greedy and try to grow the surplus much above $100 billion per year, that sure is going to soak too much money from the economy and sink us into a recession. Zeev

To: eddie r gammon who wrote (13386)	1/24/1998 5:22:00 PM
From: Monty Lenard	Read Replies (1) \| Respond to of 18056

Eddie, there are limitations as to who can roll these over into Roths based on income. The people who can afford to pay the taxes on the roll-over (taxes must come from out of pocket not from money being rolled over)will probably be unable to take advantage (I question the advantage except in a very few cases)of this so called tax break because of the income limitations. I for one would not roll over: 1. There are too many assumptions that must be made. 2. The gov't did not tax SS until a few years ago but now they do. I do not trust them to keep their word. 3. There are more but too much for a post here. I will say that the one situation I can think of that would cause me to roll over is if I knew I had a short time to live and had a large estate tax problem. In that situation, by rolling over into a roth, I would be able to keep that money out of the estate(up to some $800,000). Again, because of income limitations, it may be that a person in this situation could not make a roll over! Bottom Line----I don't think there will be as much of this as many people think. BWDIK TC