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Is it possible to put my 2k for a roth into an account with a broker and then whe I buy a stck pay the transaction fee from somewhere else. The idea here is that I want my entire 2k to be in the roth and use other money to pay any fees. Sounds like a good idea, but it may not be possible. Anybody know?
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Its a good idea, BUT...

All IRA transaction fees must be paid with IRA money. Otherwise, it's considered an additional IRA contribution. Sorry!

If you use the cheaper Internet brokers, you shouldn't pay more than $12/trade, which would make your initial transaction costs very reasonable.

Zev
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Thanks. Do you think then that it would be better to put the money into a no load mutual fund with no transaction fee? Or would you pay the discount broker's fee and get the stock?
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Youngr:
<<Do you think then that it would be better to put the money into a no load mutual fund with no transaction fee? Or would you pay the discount broker's fee and get the stock?>>

Around these parts (the Fool, that is), actively managed mutual funds are not held in very high esteem, due to their high annual expenses (~1.5% or higher), poor performance compared to the S&P500 index & high turnover (leads to high taxes= high expenses, altho this last is no factor for an IRA). So, generally speaking, individual stocks are preferred. Of course, if you pick a rotten stock, you'll lose to the mutual fund. You also need diversification, which 1 stock won't provide. Go read the 13 steps & learn more, you'll be glad you did.

Chris
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Greetings, Youngr, and welcome. You asked:

<<Is it possible to put my 2k for a roth into an account with a broker and then whe I buy a stck pay the transaction fee from somewhere else. The idea here is that I want my entire 2k to be in the roth and use other money to pay any fees. Sounds like a good idea, but it may not be possible. Anybody know?>>

Nope, it's not. If you pay the transaction fees with money outside the IRA, that payment will be considered a deposit to the IRA. As a deposit, it will count against your $2K annual limit. Thus, to avoid an over-contribution for the year you must pay all transaction fees with funds already in the IRA.

Regards….Pixy
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