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Author: jmg0608 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75377  
Subject: F4 and IRA limit Date: 11/3/1999 11:36 AM
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I have read that an IRA is perfect for the F4 startegy. I will be starting a F4 port this year and have much more than the $2000 annual limit I can put into an IRA. What can I do?

Open an IRA account with the $2000 and put the rest in a taxable account? Then move another $2000 every year from the taxable account into the IRA account?

Can I put more than $2000 into an IRA but only deduct the $2000 from my taxes?

Thanks, James.
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Author: GrayWulff Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15069 of 75377
Subject: Re: F4 and IRA limit Date: 11/3/1999 11:53 AM
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jmg0608,

Well, assuming you meet the income requirements, you could put $4000 in on January 1st. $2000 for this year $2000 for next.

With $4000 you could start a very small FF or maybe you could consider buying just one or two of the FF stocks. Put the rest of the FF in your taxable accounts, or just forget about them for this year.

For lots of ideas on this subject, visit the FOOLISH FOUR board.

Cheers,
GW

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15071 of 75377
Subject: Re: F4 and IRA limit Date: 11/3/1999 12:09 PM
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Greetings, James, and welcome. You wrote:

<<I have read that an IRA is perfect for the F4 startegy. I will be starting a F4 port this year and have much more than the $2000 annual limit I can put into an IRA. What can I do?

Open an IRA account with the $2000 and put the rest in a taxable account? Then move another $2000 every year from the taxable account into the IRA account?

Can I put more than $2000 into an IRA but only deduct the $2000 from my taxes?>>


You don't say where that money is coming from, so I assume it's now in something taxable. Thus, assuming you have the earned income of at least that amount, you may only contribute a maximum of $2k to your IRA. You may not contribute more than that unless you wish to pay penalties and end up in a big hassle with the IRS.

Regards..Pixy

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15074 of 75377
Subject: Re: F4 and IRA limit Date: 11/3/1999 1:05 PM
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If you have funds left over after you have funded you and your spouses IRA's to the max, taxable account is the Foolish thing to do with the rest. However, Foolish Four is not very tax efficient. You may want to look into index fund, tax managed fund, or long term buy and hold stock strategy for these additional funds. These achieve growth while minimizing income taxes.

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