question on contributions

[Guest dmoore80]

I'm finally able to open a Roth IRA and need some assistance. Clarify- each spouse can deposit only $2000.00 for 2001 and $3000.00 each for 2002? What if you want to deposit more? This is not a rollover, conversion, we are starting with a new account, new money.

And, can you withdraw periodically without penalty as long as it is still the principle amount? Do you have to pay yourself back within a certain time frame, or at all?

What is the best place to open an account?

Thanks!

[Guest dmj1998]

you cannot deposit more than the limits - that's why they are called limits.

a roth ira is designed to be a retirement investment vehicle - if you are planning periodic withdrawals, why are you opening an ira instead of a regular brokerage account?

go to www.rothira.com - it is very informative.

there is no one "best place" to open an account. it depends on your investment strategy, your personal level of investment expertise, and whether or not you like to sleep at night. i recommend surveying your friends and coworkers, and then calling a few 800 numbers for firms like schwab, fidelity, merrill, morgan stanley, amex, and a few mutual fund companies like vanguard, fidelity, and trowe price. get a feel for what they offer and what they will cost you. you may realize that an ira is not the type of account you are looking for.