Congress is passing a technical corrections law that will allow you to convert your IRA to the new Roth IRA this year and convert it back. If you change your mind after converting, you can change back by the due date of your 1998 tax return plus extensions. Please keep reading about Roth IRA in our newsletter and elsewhere and keep in touch regarding conversion. Please accept this as our annual offer to provide you with the most current edition of our Form ADV Part II as required by the Investment Advisors Act of 1940. But as we slog through a very tough tax season, I hate to complain about it.
Capital gains tax problems are good problems.
With roaring stock market gains for the past three years, more of you have more capital gain planning issues. The lower capital gains rates and holding periods, while complex, could not have come along at a better time. Fortunately, we recommended some tax planning moves late last year to take advantage of the new rules, which worked out well for many of you. Meanwhile, the outlook is good. While a financial advisor with a crystal ball is liable to end up eating glass, I'll give you my two-sentence assessment and predictions for the market.