I have recently started a regular mutual fund and I would also like tostart an IRA fund but at this time I am a bit strapped for cash. Sincethis is tax time would it be beneficial for me to transfer lets say$1000of my current mutual fund into a traditional IRA account then use thatamount as a deduction. I do know the benefits of the Roth IRA so Iwouldlike to convert the traditional IRA to a Roth IRA sometime after theApril1 deadline. Would the potential penalties outweigh the immediatebenefits?
Since this is tax time would it be beneficial for me to transfer lets say $1000 of my current mutual fund into a traditional IRA account then use that amount as a deduction.No can do. All contributions to IRA accounts must be in cash. Would the potential penalties outweigh the immediate benefits?I'm sorry but you lost me on this one. What potential penalties vs. what immediate benefits?
You need to do some reading on basic IRA concepts. Please read the articles in the FAQ on IRAs. You're in no rush, so take your time and absorb them. Then come back if there's something about your situation you have questions about.Phil MartiTax Preparer
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