Re: 401k and IRA question.

On Mar 13, 5:05 am, marckas...@[EMAIL PROTECTED]
 wrote:
> Thanks everyone for the replies; my questions got answered.
>
> @[EMAIL PROTECTED]
> To clarify let me state this first, for 2007 tax year I was in the 25%
> tax bracket and I am assuming I will be employed soon.
>
> You mentioned that if I was unemployed for some time during 2008 and
> fell in the lower 15% tax bracket I would, "... convert and pay $600 in
> tax. You are ahead $400."  Can you elaborate that example?  I am not
> sure what I would be converting.
>
> Also a "deductible IRA" is that a traditional IRA?
>
> Thanks.

A traditional IRA may or may not be deductable.  In order to be
deductable you must be under certain income and meet other
requirements.

see pub 590 from IRS
http://www.irs.gov/publications/p590/ch01.html#d0e825

and read "what new in 2007" which is quoted in my reply to another
poster on this thread below.

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