Skip to main content
No. of Recommendations: 0
Hi,

I and my wife are ready to invest in a ROTH IRA. I've read the AllAboutIRAs section that MF and especially TMFPixy has so eloquently written. But I've 2 questions that I am a little confused about :

1. Is it true that I can contribute 2000$ for myself and 2000$ for my wife [my wife is a home maker with no earned income], i.e a total of $4,000 for the year 1998 if I open an account before April 15th, 1999?
2. So we can also contribute $4000 to the 1999 ROTH IRA within 1999 or before April 15th 2000?
3. After 5 years we intend to buy our first home, In that case we can WITHDRAW $10,000 or $20,000 since both of us would have contributed to the ROTH IRA?
4. Finally basic question: If I open a ROTH IRA account with E*Trade and buy x amount of stock of Y company which would cover my $2000(incl comm, after 5 years when I sell my sale price has to be $20,000 or less to ensure no penalties right? But can I not withdraw the $20,000 (original contribution for both of us for 5 years) and additional $20,000 in earnings for both of us if we buy a house?

Your answers will be greatly appreciated,

Regards
NIkhil Bhat
nbhat@cisco.com
Print the post  

Announcements

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!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.