annual contribution to rollover Roth IRA

From: Richard Alpert <rda@CS.Princeton.EDU>
Subject: annual contribution to rollover Roth IRA
Date: Tue, 6 Apr 1999 20:05:47 -0400

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Is there any disadvantage to making a regular annual contribution
to a rollover Roth IRA?

Under the Internal Revenue Code, Section 408A(d)(2(B)(ii), prior to its
amendment, a qualified distribution could not be made within 5 years
of the rollover or the contribution.  Commingling funds could make for
bookkeeping nightmares.

As amended, however, it seems the five-year period begins with the
FIRST contribution an individual makes to *any* Roth IRA.

Is this correct?

Thanks,

 - Rich Alpert


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