Last Two Days to Make Tax Moves

Thursday is the last day to take these steps that will affect your 1998 taxes.

* Roth IRAs: People who convert their traditional IRAs to the new, tax-advantaged Roth IRAs by the Thursday deadline are allowed to spread the taxable income from the conversion over four years. Most banks will process application conversions until the deadline, but some brokerage firms and mutual funds are no longer allowing new applications for 1998 conversions. Visit the Times’ Web site at https://www.latimes.com/HOME /BUSINESS/INVEST101 for more information on Roth IRAs. Thursday is also the last day to set up a Keogh retirement account for self-employed people and to fund an Education IRA.

* Distributions: Required minimum distributions from IRAs must be made for people who turned 70{ before 1998.

* Trades: Stock, bond and other market trades made Thursday or before will count as 1998 transactions. Some people mistakenly believe the IRS dates such transactions by the clearing date, which is typically three days later. However, it is probably too late to sell mutual fund shares unless the fund permits same-day telephone transactions. Call your fund for information.

* Charity: Thursday is the last day to pay expenses or make charitable contributions that can be written off on your 1998 taxes. Charges made on bank credit cards in 1998 but paid in 1999 count as 1998 deductions.

* Direct deposit: Social Security recipients who have their checks deposited directly into their accounts will receive their January payment Thursday due to the bank holidays. The checks will count as 1999 income.

* Children: Parents with children born this year should apply for Social Security numbers, which are needed for child-related deductions and credits.