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Author: MerriSedai One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76398  
Subject: Roth IRA investment question Date: 1/30/2001 1:57 PM
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How do you calculate the amount you are putting in your Roth IRA? Assume I want to fund a $2000 IRA with 10 purchases of $200. My on-line broker charges $5.00 per transaction. I want any dividends re-invested.

These are things that I am really confused about -- are these true or false?

Scenario 1:
a) I can invest $200 ten times, but not dividends as they are considered investments and would put me over the limit (or I can reduce my contributions by the amount of dividends reinvested)
b) The dividends are considered earnings on my investment and do not count towards the limit.

Scenario 2:
a) The $5 fee is treated as a commission, so I am investing the max at $200, but only $195 of it can earn income
3) I can pay the $5 over and above the $200 ($205), so that all $200 can earn income.

Thanks so much!!!!
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