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ZoomTactics wrote:

I just opened a Roth with $4000 (for '98 and '99) and bought the FF. Can I send in a little
cash to my money market sweep account every month to save for my '00 contribution? Or
do I have to wait until 2000 to send them anything?

Also, when my companies pay dividends, I'm pretty sure those go into the sweep account,
too. Do the stock dividends and money market interest payments get counted toward next
year's $2000 limit?


To which I reply:

You can send in a little every month to your sweep account, but given what it earns you may be better off putting it in an index fund for 11 months and pulling it out at rebalance time. It's up to you to decide whether the difference in potential returns is worth the extra work or not.
Dividends and interest are "earnings", and do NOT count towards your contribution limit.

Tim
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