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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75859  
Subject: Re: Roth/FF monthly contribution Date: 2/8/1999 9:40 PM
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I just opened a Roth with $4000 (for '98 and '99) and
bought the FF. Can I send in a little cash to my money
market sweep account every month to save for my '00
contribution? Or do I have to wait until 2000 to send
them anything?


If your sweep account is part of the IRA you can not send in money until '00.

You could invest in an index for the 12 months and sell and pay regular tax on the gain or deduct the loss.

This is not short term money as you would put it into the IRA now if you could.

Also, when my companies pay dividends, I'm pretty sure
those go into the sweep account, too. Do the stock
dividends and money market interest payments get
counted toward next year's $2000 limit?


This will not happen unless the account is in the IRA. If it is not in the Roth you will have a distribution and be subject to tax and penality.

Can you elect dividend reinvestment for your account? This could be a good option.




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