Re: Contributions to a Roth Conversion IRA

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Contributions to a Roth Conversion IRA
Date: Sun, 3 Jan 1999 16:16:03 -0500

Next Article (by Date): A bad real estate deal Nancy Slator
Previous Article (by Date): Dec 31 stock sale question Dave Cameron
Articles sorted by: [Date] [Author] [Subject]

>I think I remember reading something about Congress changing the law and
>allowing comingling of Roth Conversion funds and plain Roth contributions.
>
>Does anyone know if Congress enacted this change? 

It did.

>What are the pros and
>cons of making future contributions to my conversion acount?

There are no cons.  The change treats all Roth IRA accounts as
a single entity (just like all traditional IRA accounts are a
single entity) and imposes ordering rules on them (you are deemed to
be withdrawing *contributions* first, then *conversions*, then earnings,
regardless of which account you take money from).

So I see no tax reason to make contributions to separate accounts anymore.

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 4.2

- -

Next Article (by Date): A bad real estate deal Nancy Slator
Previous Article (by Date): Dec 31 stock sale question Dave Cameron
Articles sorted by: [Date] [Author] [Subject]

Go to Jeff Salisbury LWGate Home Page.