RE: Roth conversion questions

From: "Jackson, Anthony D." <JacksAD1@central.SSD.JHUAPL.edu>
Subject: RE: Roth conversion questions
Date: Wed, 6 Jan 1999 17:42:26 -0500

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Jim,
	What you are spreading over the 4 years is the taxable gains that
are included in your income. Example if your converted IRA had a gain of
$40000 instead of paying the tax in this year on $40000 you will include a
gain of $10000 in your income over the next 4 years.  

"TJ"

> ----------------------------------------------------------------------
> 
> Date: Thu, 31 Dec 1998 11:48:00 -0500
> From: "James C. Parinella" <parinell@mailnfs0.tiac.net>
> Subject: Roth conversion questions
> 
> I converted my IRAs (both deductible and non-deductible) to Roth this
> year,
> and have a couple questions.
> 
> 1.  Am I _required_ to spread the income over 4 years, or can I take it
> all
> in 1998?
> 
> 2.  If I decide to spread the income over 4 years and in that get married
> and my income goes over the limit (or if I somehow miraculously surpass
> the
> limit on my own), will I incur some sort of penalty regarding the
> conversion, or will I continue to be allowed to pay the taxes?
> 
> Thanks.
> Jim Parinella
> 
> 
> - -
> 
> 

- -

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