I recently setup two Roth IRAs with Tradeking.com. After some debate, I have decided to withdraw $8000 from my savings account so that I can fully fund both IRAs for 2006. While I dislike the idea of depleting my emergency fund, I HATE the idea of missing out on 2006’s contributions. If you’ve ever wondered, here are the Roth IRA contribution limits for the next few years:

YEAR AGE 49 & BELOW AGE 50 & ABOVE
2006 $4,000.00 $5,000.00
2007 $4,000.00 $5,000.00
2008 $5,000.00 $6,000.00
2009 Plus $500 Plus $500

The limit for 2006 is $4000. (The fiscal year for contributions runs from April to April, so I have until April 17, 2007 to make my 2006 contributions.) My wife has a Roth, I have a Roth, so our COMBINED 2006 contribution limit is $8000. I sent in $800 last week, and I just transferred $7200 from my ING Direct account to my checking account. I will now send two checks for $3600 apiece to Tradeking, one for each Roth IRA.

I will work VERY, VERY hard to re-fund my ING Direct Savings account. I will treat this depletion of my savings account like a “debt” to myself. I will use my trusty “debt reduction” techniques to “re-pay” myself.

(If you are thinking about opening a brokerage account, I really like Tradeking. I’ve found that their customer service is pretty awesome. Read this post over at My Money Blog about how to get $100 for signing up with Tradeking.com.)