The Money Mustache Community
General Discussion => Share Your Badassity => Topic started by: brooklynmoney on January 01, 2019, 08:21:27 AM
-
I just fully funded my 2019 IRA contribution (6K this year) woohoo. Who is with me?
-
We funded one this morning and will do the second soon.
-
Congrats Goldy. Funding 2 right away is doubly impressive.
-
I'm going to fully fund my Roth next week - $7000. Turning 50 has it's advantages... :/
-
We funded them today and put it all in VTSAX. Does anyone know how long it'll take to transfer and purchase the shares?
Sent from my iPhone using Tapatalk
-
Boom, $12k for me and wife. Nice to get that money out of our savings account.
-
I just did half into my new traditional IRA, and am spending some quality time with the spreadsheet to see how much should go into the Roth.
-
I max my Roth every year and am not eligible do a T-IRA. I'll do the same this year. I also invested $40K into my work retirement plan last year and will evaluate what change to make with that.
-
Congrats to all my fellow early-bird overachievers!
@DreamFIRE that is some impressive retirement saving.
I'm also not eligible for a traditional IRA well it's not deductible anyway, but I still contribute to one. Someday when I have less income I'll do a Roth conversion.
-
I'm also not eligible for a traditional IRA well it's not deductible anyway, but I still contribute to one. Someday when I have less income I'll do a Roth conversion.
You said you still contribute to a tIRA even though you don't qualify for a deductible. Do you qualify for a roth?
Sent from my iPhone using Tapatalk
-
@degrom7 no I don’t qualify for Roth or an IRA deduction which I guess is a good problem to have.
-
@degrom7 no I don’t qualify for Roth or an IRA deduction which I guess is a good problem to have.
Okay. I was a little confused since you said you hope to do roth conversions in the future. Are you not doing backdoor roths now?
Sent from my iPhone using Tapatalk
-
I kind of messed up and haven’t been doing them as I go so now I am waiting until I have a lower income year.
-
I kind of messed up and haven’t been doing them as I go so now I am waiting until I have a lower income year.
You don't have to wait until you have a lower income. Since they're not deductible, you already paid taxes on them.
Sent from my iPhone using Tapatalk
-
Taxes on the gains. I have other rollover IRAs that are pretax.
-
Done! $6k into a tIRA, which I'll roll it over to the Roth as soon as I can (it will take a few days - shrug).
-
I put $7,000 into my traditional ira
And I'll put $3,500 into the Fidelity HSA as soon as the money hits the Fidelity cash account
-
Awesome!
I put only $100 in the other day, my company just switched to a monthly 401k match that is vested immediately (no one year wait anymore!!), so I'll be focusing more on that the first half of this year, especially since the match was significantly increased. Not that I'm not feeling the temptation to pull from my savings ;). Considering the market is down the lowest it's been in the past year, I'd say now is a really good time to max the roth out
-
Nice work people. We are also getting to take advantage of the stock markets ongoing holiday sale by investing now woohoo!
-
Would if I could, but I like to wait to the end of the year to determine Traditional vs Roth, since my income fluctuates. It's all about hitting the right AGI target for various tax credits.
-
Done, for my wife and myself. Felt good to get that money out of Ally and into the market.
-
Fully funded two IRAs on the 2nd...soon to be converted to Roth IRAs.
-
Fully funded two IRAs on the 2nd...soon to be converted to Roth IRAs.
What is the advantage of fully funding the two IRAs so early in the year? I contribute monthly.
And could you remind me why you'd want to convert them to Roths now as opposed to waiting for after retirement?
eta: correcting a typo
-
Putting in one lump sum in the beginning of the year gives it more time in the market.
Converting to roth could either be a backdoor Roth or taking advantage of bracket space. Think about the standard deduction, child tax credit, tax loss harvesting. If you have extra space in a lower tax bracket, it makes sense to use the remaining space up by doing roth conversions.
Sent from my iPhone using Tapatalk
-
Putting in one lump sum in the beginning of the year gives it more time in the market.
Converting to roth could either be a backdoor Roth or taking advantage of bracket space. Think about the standard deduction, child tax credit, tax loss harvesting. If you have extra space in a lower tax bracket, it makes sense to use the remaining space up by doing roth conversions.
Sent from my iPhone using Tapatalk
Thank you. Interesting. Well, maybe I'll dump mine in all at once then. I always thought dollar cost averaging was the way to go...
-
Funded mine at the first opportunity as well. Unfortunately, since we're doing the Backdoor Roth, due to wait times for transactions and conversions I'm just now buying in, so we missed the first big drop (and spike). I'm sure there's more to come, so I'm waiting for my current buy order to fulfill.
-
I just fully funded my 2019 IRA contribution (6K this year) woohoo. Who is with me?
Done!
-
Roth fully funded for 2019!
-
Congrats again to all you fellow early birds. You know what they say about worms and such.
-
Fully funded two IRAs on the 2nd...soon to be converted to Roth IRAs.
What is the advantage of fully funding the two IRAs so early in the year? I contribute monthly.
And could you remind me why you'd want to convert them to Roths now as opposed to waiting for after retirement?
eta: correcting a typo
Putting in one lump sum in the beginning of the year gives it more time in the market.
Converting to roth could either be a backdoor Roth or taking advantage of bracket space. Think about the standard deduction, child tax credit, tax loss harvesting. If you have extra space in a lower tax bracket, it makes sense to use the remaining space up by doing roth conversions.
Sent from my iPhone using Tapatalk
Degrom7 nailed it. More time in the market. And these are backdoor Roth IRAs. The IRA money is just sitting in checking anyway, so we just dump it in at the beginning of the year. I also contribute to the 401K over the course of the year, so I guess I do both.
-
Degrom7 nailed it. More time in the market. And these are backdoor Roth IRAs. The IRA money is just sitting in checking anyway, so we just dump it in at the beginning of the year. I also contribute to the 401K over the course of the year, so I guess I do both.
The bolded implies you saved the IRA money in 2018 to be able to dump it in 1/2019. If so, then you're actually ignoring the whole "more time in the market" thing by not putting it in sooner, even it you have to put it in a taxable account.
-
My wife and I have fully funded our IRAs for 2019! Boom!
Now...the only sad thing is knowing that we can't do anything else to affect the balances this year.
I feel impotent!!
-
Putting in one lump sum in the beginning of the year gives it more time in the market.
Converting to roth could either be a backdoor Roth or taking advantage of bracket space. Think about the standard deduction, child tax credit, tax loss harvesting. If you have extra space in a lower tax bracket, it makes sense to use the remaining space up by doing roth conversions.
Sent from my iPhone using Tapatalk
But you've been stock piling that money since 2018 rather than putting it into the market. I would argue that dumping that money into a taxable account as you earned it in 2018, and then funding your IRA as funds become available in 2019 will actually give your money more time in the market.
I had a few thousand extra in my checking account in December and I waited until January to fund my wife's IRA. I like to keep a $10k emergency fund in savings, but I pulled a few grand out of that so I could top off her IRA all at once. I will be funding my IRA and replenishing our savings account as money becomes available. Should have both topped off by mid year, then I will start dumping money into the taxable.
-
Degrom7 nailed it. More time in the market. And these are backdoor Roth IRAs. The IRA money is just sitting in checking anyway, so we just dump it in at the beginning of the year. I also contribute to the 401K over the course of the year, so I guess I do both.
The bolded implies you saved the IRA money in 2018 to be able to dump it in 1/2019. If so, then you're actually ignoring the whole "more time in the market" thing by not putting it in sooner, even it you have to put it in a taxable account.
Part of the end of the year bonus money from 2018 goes straight into the IRA in 2019 (since 2018 IRA room was full already, along with every other tax advantaged account). Not sure how many days it was sitting there, and I guess I could have put it in a taxable account for that time, but I'm sure I have more "bleeding" elsewhere that would be better to fix. ;)
-
As a single person, I just funded the Roth IRA max $7000, increased my 457B to the new max $25,000, and will contribute at least $5000 to my 401(a).
-
If my calculations are correct we are getting back $5600 from the IRS this year. I wasn`t expecting that based on how much we made this year. I`m going to split it between me and my wife`s IRAs to boost our paths to maxing out earlier this year.
-
I fully funded our HSA at $7000 this month and already invested it into vtsax. Happy to see the slight increase bump on allowances for all the tax advantaged contributions.
-
For the purposes of dollar cost averaging, I space out my Roth IRA contributions over the course of 6 months each year.
-
Putting in one lump sum in the beginning of the year gives it more time in the market.
Converting to roth could either be a backdoor Roth or taking advantage of bracket space. Think about the standard deduction, child tax credit, tax loss harvesting. If you have extra space in a lower tax bracket, it makes sense to use the remaining space up by doing roth conversions.
Sent from my iPhone using Tapatalk
Thank you. Interesting. Well, maybe I'll dump mine in all at once then. I always thought dollar cost averaging was the way to go...
I like to DCA as well, but I'm curious if it makes sense on a small investment like an IRA (only $6k) which is small in the scheme of things.