Is This For You? YOU'LL WANT TO CONVERT AN EXISTING IRA TO A ROTH IRA IF: -- Your single or joint 1998 income is below $100,000 -- You don't need the IRA money for at least five years, and preferably 10 -- You don't expect your tax rate to drop sharply when you retire -- You can afford to pay taxes on the amount you convert from cash on hand, other investments, or borrowings -- You want to postpone IRA withdrawals even after you turn 70 -- You want to leave your heirs a tax-free savings account YOU'LL WANT TO MAKE FUTURE CONTRIBUTIONS TO A ROTH IRA, INSTEAD OF A TRADITIONAL IRA, IF: -- You're in an employer-sponsored pension plan and your 1998 family income is between $50,000 and $160,000 ($30,000 and $110,000 for single taxpayers) -- You won't invest the current-year tax savings from a deductible contribution to a traditional IRA -- You don't expect your tax rate to drop sharply when you retire -- You're a long way from retirement Return to main story

Updated Jan. 22, 1998 by bwwebmaster
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