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Here's an idea I've had, which I'd like feedback on:

I'm 25, and recently inherited $50,000. I'm thinking of putting this all into a Roth IRA. I know there's SUPPOSED to be an annual contribution limit of $2000. But if I'm reading the IRS publication right, the penalty for going over that amount is only 2%. So for going $50,000 over the limit, my penalty would only be $1000. I'd willingly pay this now, because then, in 35 years when I retire, all the earnings on the whole $50,000 would be tax free... and that should be a lot more than $1000.

Has anyone tried this before? Does it make sense, or is there something I'm missing?
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