SIMPLE IRA CONVERSION

[Guest bobo]

The corrections act specifically said that SIMPLE IRAs can be converted to Roth IRAs for past years accumulations, but there is a catch 22. All SIMPLE IRAS are, by definition, 1 year old. The trustee (Franklin) won't convert because ther is a penalty for the first 2 years. Congress must have overlooked this, otherwise there's no point in OKing SIMPLE IRAS for conversion. Any ideas, or other experiences? I'd like to convert by 12/31/98 if I can find a way.

[BPickerCPA]

You cannot do a conversion of a SIMPLE until the SIMPLE is two years old. Therefore no conversion is currently allowed. One will be allowed in the future.