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(cross-posted from Credit Card board)

How much of a tax benefit is it to contribute to a ROTH IRA? Can it have significant impact on reducing tax liability? And can this still be done even if we've already filed? (I've left a message with our tax preparer to ask the same thing.)

Also, if DW and I both fully fund our (currently non-existent) ROTHs for 2004, do you think it's best to make the $6k contribution using funds in our brokerage account (value: $16k) or by selling some ESPP stock (value: $20k). The ESPP stock has made nearly a 500% profit already, so there would be more significant 2005 tax implications in that scenario.

Bottom line is we don't have the cash on hand, so it would require selling securities to make the contribution.

Is this a good idea or not?? Should we not worry about rushing to do it this year and just make it a goal to make contributions for 2005?

Thanks in advance!

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