Roth IRA: Lump-sum contribution -vs- monthly payments

[agar316]

Is there an advantage to making monthly payments in to your Roth IRA or is it the same as making a year end lump-sum contribution?

[jively]

[ QUOTE ]
Is there an advantage to making monthly payments in to your Roth IRA or is it the same as making a year end lump-sum contribution?

[/ QUOTE ]
For tax purposes, it's the same.

Monthly:
+Easier for cash flow
+Dollar cost averaging (if into mutual funds)
-May have to undo if you find out if you find out late in the year that you don't qualify
-May need to change amount every year or two when tax laws change
-Not good if you have transaction fees

Annually at start of year
+Get money invested faster, get that's year's return
+One time is better if you have transaction fees
-May have to undo if you find out if you find out late in the year that you don't qualify
-May be harder for cash flow

Annually at end of year / Jan-Apr 15 of following year
+Should have correct knowledge if you qualify
+One time is better if you have transaction fees
-May be harder for cash flow
-Get money invested later, lose that's year's return

-Tom