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URL:  http://boards.fool.com/scottfm-as-long-as-the-money-is-still-in-the-15040852.aspx

Subject:  Re: Mechanics of Investing in IRAs Date:  5/24/2001  11:34 PM
Author:  phooley Number:  29905 of 76418

scottfm,

As long as the money is still in the associated cash account (i.e., money market) and not already in the IRA, you can do whatever you want with it.

I don't think many people would agree with that statement


why not? are you saying I can't do whatever I want with the money I have in a brokerage's money market acct or am I missing something? please explain.


You probably just mis-read this part of the original post, which said:
I've set up a regular brokerage account as well as a Roth IRA at
etrade. In my Roth IRA, I put in my $2,000 for Y2K contribution,
and so far this year, I've put in about $385.
Your statement would have been OK, if the money were actually just in a MMA, but it isn't -- it's evidently in a MMA, but it's already in the Roth IRA. Two points:

(1) susana901 is free to transfer the funds to a Roth IRA account at another firm, whether the funds are sitting in a MMA or have been invested in stocks, mutual funds, etc. (Commissions and fees could be a problem in the non-MMA case, but there's no prohibition against moving the funds to another firm.)

(2) Since the money is in a Roth IRA, it's important to either leave it at etrade or move it to a Roth IRA elsewhere, if susana901 wants to be able to contribute the maximum of $2,000 for the year -- in other words, susana901 can't just "do whatever" with the funds.

As I say, you just probably mis-read that part of the original post.

Phooley in Phoenix
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