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I started a Roth IRA account about a year ago, but I am still a bit unsure about some of the rules.

1. With my first $2000, I bought two good long term stocks (GE & UTX), and unfortunately two losers (SCH & CRA). I am considering selling the losers and buying into better long term prospects. First, can I sell and buy stock within my Roth IRA account? is there a penalty as long as I don't actually withdraw from the account? What are the tax implications? Can I claim a tax deduction on my losses?

2. Are contributions based on the calendar year or tax year. In other words, am I able to contribute $2000 in 12/01 and $3000 in 1/02, or $2000 in 3/02 and $3000 in 5/02?

Thanks for helping a beginner out!!
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