Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I'm going to establish a new IRA and, since I don't already have one had a couple questions:

I had been using company 401K and got burned by BAD investment strategies by plan administrators; will still invest although probably only to point of maximum company match as I can do better than those NOT-AT-ALL-foolish jesters. I have considered doing a 401K roll-over into a self-directed IRA (on a annual basis?, is this allowed?) and wondered if I could roll into a Roth IRA or are these reserved for AFTER-tax contributions?

I figured that I would set up a Roth IRA for 1998 and was wondering about 1997 IRA funding (since I haven't yet). If I wanted to establish a Roth IRA and fund it for 1997 and 1998 tax years, am I correct in my assumption that I would have to put 1997 funding in a standard IRA, take a distribution and pay penalties and taxes and then put the remainder in a Roth IRA with the 1998 funding?

Second, I might be re-filing prior year taxes for other reasons and wondered if I could re-state my IRA contribution from $0.00 to $2000/year funding it now eventhough I didn't ACTUALLY fund it then?(I presume the answer to be NO!)

Thanks for letting this new FOOL ramble...,
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.