Replies to post #141516 on Wave Systems Corp. (fka WAVXQ)

[rachelelise]

Mundo

There are ongoing compensation limits for eligbility. However (and this is by memory) there is a one time exception to the rules for 2007 which allows anybody to convert exisitng IRAs into Roth IRAs. I intended to look into that but haven't so this may not be accurate.

Since the conversion typically results in taxable income for convertees, my sense was this was a short term revenue generator and thus the exception. The government has sometimes allowed exceptions to the rules in the past for this reason.

Whether converting makes sense is another story. At some point this year I will investigate if the exception is real.