No. of Recommendations: 0
The initial contribution to an IRA -- one that is not a conversion from traditional to Roth -- is just the first sum of money deposited. The importance of it for a Roth is the date, not the amount.

The minimum amount of the initial contribution is determined by the IRA provider. In other words, it's the minimum amount to open or maintain an account.

Ordinarily the maximum amount is the same as the maximum that you are allowed to deposit per year. That is $2,000, or the amount of your qualifying income, whichever is less.

Between January 1 and April 15, however, if you did not max out your IRA contributions the year before, it is possible to contribute for two years at once, so that the effective maximum is $4,000.

It is not analogous to opening a brokerage account and converting it to a Roth IRA, because you cannot do that. A new Roth IRA must be opened specifically as a Roth IRA (do not use the brokerage's regular account application form).
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.