UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: MoneySpice Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75794  
Subject: IRA Account Conundrum Date: 3/7/2002 11:13 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0


I recently set up a Traditional IRA with BuyandHold.com

I made my entire 2001 contribution last year and have already made my entire 2002 contribution.

All of this cash is sitting in a money market - so I tried to set up an automatic monthly investment plan for a stock this morning - at least as a start.

Apparently, what I see as one pot of money - they see as two - the system forced me to choose which year's funds would be used to make the monthly purchases. OK, so when I chose 2001 - it wouldn't go through unless I also set up a monthly investment amount to be drawn from 2002 funds. This frustrated me because what started as one monthly transaction now became two - with two separate transaction fees.

In other words, the system forces you to split up your investment amount.

I called them to inquire - they told me that this is an IRS rule - that you can't use funds from 2001 to make investments without also using 2002 funds simultaneously to make investments.

I am confused. I know there are rules regarding contribution limits and time periods for making contributions - but are there also IRS rules for how you invest the money once it's already in your account?

Any thoughts?

Thanks, MSpice
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement