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To: j g cordes who wrote (15303)	3/8/1998 6:11:00 PM
From: Gerald Walls	Respond to of 68251

Gerald, how will the Roth IRAs change funds flow into the market? My guess is just a little. Roll-overs won't have any effect because the money's already in the market and new money is limited to $2,000 just like in the old IRAs. There will be a few additional people who'll invest due to all the hoopla and there will be a few more who'll invest in deductable IRAs now that the wage restrictions have been loosened, but since we're only talking $2,000 a pop and part of that will be spread out over the entire year and not just here at the start it'll probably just be noise, IMHO. There's likely to be a nice increase in taxes collected over the next four years as people decide to roll over IRAs into Roth IRAs this year and spread the taxes out over four years. It's kind of funny but I suspect that people will still be paying the deferred tax after the tax laws are changed to make Roth IRAs less desirable like was done with deductable IRAs years ago.