Employer Traditional IRA to Vanguard Traditional IRA

[wiredjack]

My intent was to roll a prior employer Traditional IRA into a Traditional IRA with Vanguard all the while avoiding

• early distribution fees
• tax penalties
• stay within 60-day rollover requirement

The prior Traditional IRA funds were moved (started 10/18/2020) into a Traditional IRA Brokerage Account in Vanguard's Federal Money Market Fund (Settlement fund). I'd like to now use that settlement fund to contribute to an IRA by buying into VTSAX.

My question is. Will that be considered a proper rollover into another Traditional IRA while avoiding the list of items above?

[wiredjack]

Spoke with Vanguard on the phone. It seems the obvious part I missed was the type of account Vanguard setup for me to transfer into does indeed keep me in a Traditional IRA no matter what Vanguard mutual funds I choose to purchase using that settlement account. Any other advice would be greatly welcome. I'm in my 30s, married, three kids living on a single income. Just finished paying off all the debt outside my mortgage and can't wait to start learning more about saving and building wealth. Just finished J.L. Collins book the Simple Path to Wealth which eventually landed me on this blog.

[zolotiyeruki]

Awesome!  You've come to a great place, and it sounds like you've already got your house in order, finance-wise.

Any other advice?  Make more, spend less, love life, and make sure you have enough Roth contributions and money in taxable accounts to cover the first five years of your early retirement while you build up your Roth Pipeline.