Hey all,

I've finally decided to get off my arse and start a Roth IRA at a discount broker. Then I find out that all commissions for online trades MUST come from the IRA account itself and cannot be paid for separately (i.e. credit card or personal check). At least 2 online brokerages (DLJDirect and Fidelity) have told me that this is just the way IRAs work. Has this been the case for others out there?

I was incredulous when I first heard this...it eats into my compound growth!! Fool-Four trading every 18 months at $20 a trade (DLJ rates) is insane. I guess IRAs are better suited for mutual funds...which brings me to my other questions.

Is the Fool-Four investment method really suited for self-directed Roth/Regular IRAs?

Or should I just bite the bullet and pay beyond the $2k limit (maybe $50 extra a year), take the penalty hit, and move on?

Just what is the tax penalty on the excess amount? Do they just tax the excess or the entire sum?

This whole process has been quite annoying. :P

Thanks for any help,

Xan