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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121261  
Subject: Re: Roth Question Date: 12/30/1998 3:05 PM
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[[ I was eligible to set up a Roth IRA this year and so a few weeks ago I set up a
new account with the $2K max contribution.]]

Congrats!!!

[[ I'm still trying to decide how to invest the $2K rather than letting it sit in a Money
Market fund. Since the $2K seems like a paltry amount to buy stocks with -
without incurring an excess contribution penalty -and considering that my 1999
status is not likely to change with respect to my Roth eligibility - does it stand to
reason that in a few days when 1999 rolls around - I'll be eligible to add another
$2K to the account for 1999? ]]

Right...in just a few days you can have $4k in your Roth IRA account.

[[ The bottom line here is that at least with a $4K balance I might be able to
actually do something with the money.

Also, if I did this, then I could not add another $2K (assuming eligibility status
remains the same) until 1/1/2000?]]

That's correct.

[[ PS/as an aside - one of the more popular financial gurus has said that he is not in
favor of Roth IRAs - he doesn't think that over the long run - the Govermment
will be able to keep its promise not to tax the distributions. Any thoughts or
prognostications?]]

I also believe that the Roth IRA earnings will be "means tested" in some way, shape, or form in the future. But I'm not going to let that belief taint my view on investing and saving today. I have NO IDEA what the Congress may do in the future. No way you can outguess those folks. So I chose to do what is in my best interest today, and deal with tomorrow when (and if) it comes.

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