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Author: BookmFool Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81352  
Subject: Re: efund, house fund, or Roth?? Date: 3/20/2003 4:57 PM
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Greetings Vegas:
I guess there wouldn't be much drawback to putting money in a Roth since I can always take the contributions part of it back out at any time right?

Here's one that came to mind. When you withdraw the contributions, you'll leave nothing but earnings in the account. And if the money was in a MMF, the earnings prolly won't amount to much. As a result, the institution where your Roth is held may have a policy in place where they'd want this account closed relating to certain account minimums. Then you'd have taxes and penalties to worry about. I'd make sure this wouldn't be a problem with the institution where you plan to open the Roth.

JMHO, I'm not a big fan of loosing opportunities to further one's retirement goals by contributing to a retirement account when it's not really meant to be use for its purpose. When you contribute to an IRA for a particular year, you cannot get that year back if that contribution is removed from the account. You're also limited on how much you can put in this house fund with the Roth's limits. With a MMF at a fund company, the sky's the limit. Again this is JMO.

I agree the house fund is most important as well. But maybe you can contribute to both that fund and a Roth.


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