Re: [CANSLIM] Re: 401K, Roth and IRA (OT)

From: "Robert Gammon" <rgammon51@yahoo.com>
Subject: Re: [CANSLIM] Re: 401K, Roth and IRA (OT)
Date: Sun, 09 Dec 2001 18:49:38 -0600 (CST)

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Distributions from all tax deferred retirement accounts except 
for ROTH IRAs (but then again ROTH's aren't really tax deferred 
are they) start in the year in which you turn 70 1/2.  In that 
year you take TWO distributions of a calculated minimum size 
(about 6%).  IRS Pub 590 spells out all the rules, downloadable 
as a PDF from www.irs.gov.

Contribs may go into current employer's 401(k), and NOT to one of 
a previous employer.  Additionally, depending on income level, 
you may also make a tax deferred contrib to an IRA, or to a ROTH 
IRA.

As for IRAs, many IRAs permit option purchases, some even allow 
spreads.  Brown&CO and WallSt Access are among those that permit 
option purchases.  Option boutiques, some of whom advertise in 
IBD, permit spreads and various other option strategies.  As for 
shorting, a purchased put gives you the same benefit as an 
outright short, so with purchased options you have the shorting 
priviledge, although with fewer choices (not every stock you want 
to short has options available).

In order to get funds BACK into the old 401(k), you have to go 
back to work for that firm.  Remember that the account is 
controlled by your employer, not the company that is the 
custodian.  Just because both plans share the same custodian does 
not in any way imply that you can comingle the funds, unless you 
roll one of them into an IRA upon termination from the employer 
and roll them into the NEW plan.  Going the other way is just not 
possible, unless you and your former employer can resolve your 
differences and you go back to work for them.

Robert Gammon
I prepare tax returns at HR Block


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