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To: John A. Greenwood who wrote (2923)	2/10/1998 11:08:00 AM
From: K. M. Strickler	Read Replies (1) \| Respond to of 3276

John, I have been looking into the ROTH, but there are definitely some questions! When the 'rollover' is performed, you become 'liable' for the tax due. It is true that you have up to 4 years (I have been told) to pay the 'bite'. As an example, let's look at 200K! If the 'tax' bite is 25% (I think it 26%, but not sure) that's 50K! Now after the 'rollover', you still have to wait for 5 years before you can start taking money under the ROTH! This means that you have to 'hold out' 50K for taxes (and I don't know if you will be 'double-taxed' on that or not). The 150K now grows under the ROTH, and being unavailable for withdraw for 5 years, if you are already retired ;-) and 'living' on your investments ;-) you have to have the monthly 'flow' for current expenses, where could the money come from? Maybe you can 'roll' part from IRA to ROTH (you can), whether you can roll enough, and maintain enough cash flow would be a personal decision. The IRA is currently being taxed in the 15% ongoing rate, ( could be higher, depending on your bracket ) and I haven't worked out the math as to whether changing is a good idea for anyone who is retired. Of course, if you retire 'out of the country', and IRA is a ROTH, and that really pisses the gov't off! ( The gov't NEVER GETS YOUR MONEY! ) On the other hand, if you are currently in the 'work force' and won't be retiring for at least 5 years, the ROTH looks like a winner! I don't think that it will be offered very long, since the government looses some long term tax money. The gov't is trading short term $$ (immediate taxes) for long term $$ (no taxes)! When they come to grips with this, I think that the law will change again. I think that the gov't may be 'overselling' the ROTH idea for the short term $$, and will get substantial $$ if people 'jump too soon'! After the decision is made, the gov't will have your $$$. You really have to investigate this one CAREFULLY! Does this help?? Ken

To: John A. Greenwood who wrote (2923)	2/10/1998 11:13:00 AM
From: stock bull	Read Replies (1) \| Respond to of 3276

John, sure isn't easy to get an answer to your question. Seems like a simple question to answer for those that work in the financial field. Guess everyone covers their butt...give no advice. Good old IRS, can't even respond within their own timeframe. Have you tried searching the internet for tax information? Worth the try...never know what you may come up with. Roth IRA's seem very attractive...in my case, I am retired, so I don't think the Roth is of much use to me at this time. Cashing out my existing IRA's would generate a taxable event. Good luck in getting your answer from the IRS. Stock Bull