No. of Recommendations: 0
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.

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.