Replies to post #141316 on Wave Systems Corp. (fka WAVXQ)

[soter]

xxxxcslewis

I believe a Roth must be held five years before you can start taking out money tax-free. Still a good deal..

Soter

[knute97]

xxxxcslewis

You are correct. But my understanding is that the Roth holding period is 5 years. If I'm correct, then my money is locked up for 5 years.

If I withdraw an IRA before 5 years (age >59 1/2) the money is taxable at full rate. Also, the contribution limit for my age bracket is $5k for 2007.

You do bring up an interesting point though.

[Snackman]

XXXX, you are correct, that is why I transferred 65% of my Wave stock from my IRA to a Roth IRA last year. I only have four more years to go before I can use it TAX FREE.