Should I use a credit card check to fund my Roth IRA contribution?

I typically save enough money every year to make the maximum contribution to my Roth IRA. However, due to buying a new home and poor budgeting on my part, I don't have $4,000 to put into my Roth IRA. I am 28 years old and I know having the money in my Roth IRA for the longest period of time will give me the most payoff when I retire. Should I use a cash-advanced credit card check to fund my Roth IRA contribution for 2007? The fee for using the check would be 3% plus I probably can't pay it off right away so I would pay 3.99% interest. Is the amount I will make in the long-run in my Roth IRA worth it? I invest in mutual funds that pretty much track the S&P 500. Thanks!

That is the most terrible idea ever. What if your Roth tanks and the introductory rate goes away? You could see a 10-20-30% loss.

Borrowing to invest is a bad idea, except in the case of student loans one could argue.

Over the course of the last year, the SP500 has gained approximately 7 percent. That is the same as the 3%+3.99%. So you would owe the credit card bank 4000 dollars plus 280 in interest. If the SP stayed on the same pace, it would a year until you recouped the 6.99 fees. And, then you still would not be able to touch it - because you cannot touch the earnings in a Roth - except for certain circumstance. And, this is not one of them.

It all comes down to how much interest you are earning in your Roth IRA. If you will be earning more interest in that account than the amount you will be charged for using the credit card money, then you are probably okay. But if is going to cost you more to borrow the money it's just not a good deal.

You actually have until April 15th 2008 to make the contribution for the year 2007. Start depositing what you can each pay period and if you can't get the whole $4,000 by the deadline, if you did decide to borrow, you would be borrowing less - therefore less fee and less interest.

NO, never borrow from credit for any kinds of savings. Why bother to borrow money from a credit card that will charge you a high interest rate, so when can you break-even on the interest pay out to the credit card company, and really earning money. So why bother? But the bottom line is NEVER "borrow" from credit card company for any kind of savings.

No. You should be paying off your credit card bill before saving in a Roth. However, you can still contribute to your 2007 contribution up until April 15, 2008. So, if you budget better, maybe you'll make up the contribution.