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Originally Posted by emnah94
my next option for the money is converting it to a ROTH IRA once its been rolled over. I haven't yet contributed for 2006, and would like to get as much in there before April 2007 for the satisfaction of knowning that there's something in there for 2006, even if its not the $4k max. I am in the 25% tax bracket, so I estimate that converting the Rollover IRA to a Roth will cost me approx. $693 (do I pay this separately, or is it deducted from the rollover amount automatically? also, are there any other fees associated w/ conversion?) Once converted, I can contribute additional money for the ROTH so it will equal $3000 by April 2007. Is this a sound idea? I thought about leaving it in the Rollover IRA, but then I would only have $1150 in my ROTH for 2006 (what I can afford to contribute between now and April). What am I better off doing?
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Your rollover/conversion money is separate from your contribution money. Therefore you can still put in $4,000 for 2006 and $4,000 for 2007, regardless.
If possible you want to pay your conversion taxes out of pocket, and not pull it out of your IRA. There should be no additional fees to roll over or convert, assuming you're picking a reputable company such as Vanguard.
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Originally Posted by emnah94
Secondly, I have about $1000 in ING - trying to build up my emergency fund. Had a few thousand in there last year, but relocation depleted most of my funds. I am currently contributing about $600/month towards this EF. Should I instead put this money toward the $3600 cc debt (for which I am currently paying down at $350/mo. since it is 0% interest) so that it can be paid off more quickly? I feel uneasy about doing this and not building up my emergency cushion.
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Tough call, since your CC is 0% interest. If you're comfortable with it, you're best continuing to pump your EF and pay off your CC later, before the 0% rate ends.
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Originally Posted by emnah94
Finally, I have additional continuous savings for Christmas and Vacation expenses. Where is the best place to house this money? Does ING allow you to have multiple savings accounts for different purposes?
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According to others on this site, yes, ING offers sub-accounts so you can divide up your savings by priorities/goals.