Me: Do you mean that you cannot contribute $2000 to your traditional IRA on Jan 2, $2000 to a Roth on Jan 3, and then roll the traditional to the Roth on Jan 4?Pixy: If you made a contribution on Jan 2 for the year 1997 (which you could do providied no contribution had yet been made for 1997) and then made a 1998 contribution on Jan 3, then everything is fine. However, if you made a 1998 contribution of $2K on Jan 2 and then made another deposit on Jan 3, the second deposit exceeds the limit for 1998 and must be withdrawn or it will be penalized.>>Me again: Now I'm more confused. Do you mean the Roth and traditional IRAs' contributions together cannot exceed $2000? Or that you cannot make a $2000 contribution to the Roth in addition to any rollovers in 1998? In the previous question, all contributions were for 1998:Jan 2: Add $2000 to tradional IRAJan 3: Open Roth with $2000Jan 4: Roll tradional over into Roth [and now, thanks to your affirmative answer wrt SEP]Jan 5: Roll SEP over into RothI'm not clear on what "limit" you refer to that has been exceeded.
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