IRA's

[BradleyT]

For tax purposes last year I put $1500 into a bank CD in a traditional IRA. I already had $1500 in my ROTH for the year.

If I would like to transfer it at maturity into my roth I will have to pay taxes on the $1516 at maturity correct? Also does the transferring it count towards the $3K per year max since it's basically a "rollover"?

[Ray Zee]

why put ira money in a cd. its going to compound over the years so you want stocks that you can hold forever.
also i dont see why you would want to pay taxes on the money when you can have them compound for you in the ira.

[Ashe]

Yeah, you'll have to pay taxes on the rollover, but its worth it. Roths are much better in the long run.
It sounds like this 1,500 was a past contribution. As long as it was made in a prior year, it shouldn't factor into your current years contribution limitations.

I agree that this investment should be mostly stocks (in the form of a good index fund), but to each there own...GL