Re:ROTH IRA SET UP

pupnsudz831 — Fri, 18 Jul 2008 02:40:27 GMT

reading the forums i found a really nice website for beginners like myself to realize how to start a portfolio that I would like to share investingessentials.blogspot.com I am just starting to read it and so far what I have got from it is that SPY (sp 500 index) currently tracks mostly large cap market so a good way to diversify is too look for an index maybe that tracks mid size or even small size caps..

Re:Re:ROTH IRA SET UP

PACKRAT5150 — Fri, 18 Jul 2008 12:53:58 GMT

First thing first you should check the IRS site for limitations for your Roth IRA account.

http://www.irs.gov/pub/irs-pdf/p590.pdf

The above site page is the PDF for IRS IRA for 2007

Oh by the way the maximum has increased to 5000.00 for tax year 2008.

Only if you can qualify for that amount by your adjusted gross income?

Note where did you get the 6% number? There is a penalty for over contribution, which would have to me remove from your account.

The increase in net asset value in your account is not taxable if you leave it in your account. If you withdraw your initial invest (money you contributed) there is not taxes on that amount. The earning on that money can be taxed if the IRA is less than 5 years old.

Please check IRS site for more definite answers.

About ETF try this site

http://www.etfconnect.com/

I am not an ETF fan but that site was recommended for me. I own only mutual funds I don’t want to pay commissions and I plan on holding my funds much longer than a year when I buy them.

Dividends don’t mean anything in Tax-Sheltered accounts because of the non-taxable nature of an IRA. The only total returns really count when comparing different stock or funds.

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Re:ROTH IRA SET UP

Re:Re:ROTH IRA SET UP