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I am eligible to put $3,000 into a Roth IRA this year and intend to do so.

Question: Do these contributions need to be made in a lump sum? Or could I make, say, a $1,500 contribution today and a second $1,500 contribution in three months?

Pete
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Question: Do these contributions need to be made in a lump sum? Or could I make, say, a $1,500 contribution today and a second $1,500 contribution in three months?

You can contribute in any increments that the financial institution that administers your IRA allows.

IF
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Question: Do these contributions need to be made in a lump sum? Or could I make, say, a $1,500 contribution today and a second $1,500 contribution in three months?

Pete


Hey Pete. When I used to contribute to my IRA I made monthly contributions of $166.66. I would think you can slice and dice your contributions any way you want as long as the IRA custodian can handle it.

Good luck,
ImAGolfer
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One key factor may be whether your account has a cash or money market account where you can park contributions until you have sufficient funds to make your purchase. Most mutual funds have minimum purchase amounts, and ideally transaction costs should only be 2% of total investment expenses, which may not work well with lower monthly contributions.

Fuskie
Who thinks you can also make your monthly or bi-weekly contributions into an ING Direct Orange Savings account until you reach the desired level to move it into RIRA and make your desired fund or equity purchases...
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Pete,

I am eligible to put $3,000 into a Roth IRA this year and intend to do so.
Question: Do these contributions need to be made in a lump sum? Or could I make, say, a $1,500 contribution today and a second $1,500 contribution in three months?


Unless the IRS changes the rules before then, you have until April 15, 2005 to make your full 2004 IRA contribution.

Mike
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Mike sez,

Unless the IRS changes the rules before then, you have until April 15, 2005 to make your full 2004 IRA contribution.

You have the wrong culprit. Congress makes the rules and the IRS merely interprets and implements them. Otherwise, your statement is entirely correct. <vbg>

Regards...Pixy
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Pixy,

I knew that, yeah... :)

Mike
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Mike sez,

Unless the IRS changes the rules before then, you have until April 15, 2005 to make your full 2004 IRA contribution.


You have the wrong culprit. Congress makes the rules and the IRS merely interprets and implements them. Otherwise, your statement is entirely correct. <vbg>


Well, actually both Congress and the IRS make the rules. Congress makes the laws, but the IRS makes regulations. I think they can both be considered "rules."
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