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I have had a traditional IRA through a "full service" broker for several years; last year I received a notice from the IRS that my contribution for the previous year was not tax deductable because I made too much....the full service broker never explained any of the rules to me. Reading the IRA related materials on fool.com has been instructive and enlightening....I'm ready to get foolish!!!!

I can't afford the tax liability if I were to convert my traditional IRA to Roth, so I want to open a Roth IRA (my income will permit $2000 per year contributions to a Roth), but my question is this: If I open the Roth IRA before April 15th, can I fund it with $4000 ($2000 for 1999 and $2000 for 2000)???

Thanks in advance for any input.

Mgeudt


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Mgeuldt asked: "I want to open a Roth IRA (my income will permit $2000 per year contributions to a Roth), but my question is this: If I open the Roth IRA before April 15th, can I fund it with $4000 ($2000 for 1999 and $2000 for 2000)???"

Yes you are correct as long as you open the account before April 15th and you have not made an IRA contribution for 1999 you can make both a 1999 and a 2000 contirbution for a total of $4000.
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Can you open the account and make a 1999 contribution but not make a 2000 contrib (until after April 14)?

Also, Is there such a thing as a joint Roth IRA or do you need to set up two: His and Hers?

Thanks!
Rob
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Greetings, Rob, and welcome. You asked:
<<Can you open the account and make a 1999 contribution but not make a 2000 contrib (until after April 14)?>>

Yes, you have until April 17, 2000, to make a contribution to an IRA for tax-year 1999.

<<Also, Is there such a thing as a joint Roth IRA or do you need to set up two: His and Hers?>>

You need to establish two. An IRA cannot be owned jointly with someone else. That's why the "I" in IRA stands for Individual. :-)

Regards..Pixy
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Can you open the account and make a 1999 contribution but not make a 2000 contrib (until after April 14)?

Also, Is there such a thing as a joint Roth IRA or do you need to set up two: His and Hers?

Thanks!
Rob


Yes you can opent he account now with a 1999 contribution and not make a 2000 contribution till next year before april 15th if you want. You can make a contibution for any tax year from January 1st of that year till April 15th(or the tax filing deadline if later) of the following year. So you can make your 2000 contribution anytime this year or next year before April 15th, 2001.

There is no such thing as Joint IRA's (the I stands for individual) so you must set up his and hers.

Sorry it took so long for me to respond, I've been busy on other boards. Fell free to E-mail me with any further questions.

DavidDunce
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mgeudt asked..

"If I open the Roth IRA before April 15th, can I fund it with $4000 ($2000 for 1999 and $2000 for 2000)??? "

I have seen you have been told this can be done.

I would recommend for tax purposes and so there is no problem that you make out two checks and that you write on each check which Roth IRA year it goes to.

It also would make more sense to use the lower numbered check for 1999 and the higher number check for 2000.

You should send explicit instructions and keep a copy of those instruction as long as you hold the Roth.

BGP

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