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General Discussion => Share Your Badassity => Topic started by: brooklynmoney on January 01, 2019, 08:21:27 AM

Title: IRA Contribution for 2019
Post 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?
Title: Re: IRA Contribution for 2019
Post by: Goldy on January 01, 2019, 11:50:34 AM
We funded one this morning and will do the second soon.
Title: Re: IRA Contribution for 2019
Post by: brooklynmoney on January 01, 2019, 11:55:16 AM
Congrats Goldy. Funding 2 right away is doubly impressive.
Title: Re: IRA Contribution for 2019
Post by: frugalkristen on January 01, 2019, 12:30:45 PM
I'm going to fully fund my Roth next week - $7000.  Turning 50 has it's advantages...  :/
Title: IRA Contribution for 2019
Post by: FIREball567 on January 01, 2019, 12:53:00 PM
We funded them today and put it all in VTSAX. Does anyone know how long it'll take to transfer and purchase the shares?


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Title: Re: IRA Contribution for 2019
Post by: LWYRUP on January 01, 2019, 02:24:58 PM
Boom, $12k for me and wife.  Nice to get that money out of our savings account. 
Title: Re: IRA Contribution for 2019
Post by: letired on January 01, 2019, 02:35:18 PM
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.
Title: Re: IRA Contribution for 2019
Post by: DreamFIRE on January 01, 2019, 04:53:15 PM

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.
Title: Re: IRA Contribution for 2019
Post by: brooklynmoney on January 01, 2019, 07:11:24 PM
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.
Title: IRA Contribution for 2019
Post by: FIREball567 on January 01, 2019, 07:24:11 PM
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?


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Title: Re: IRA Contribution for 2019
Post by: brooklynmoney on January 01, 2019, 08:19:11 PM
@degrom7  no I don’t qualify for Roth or an IRA deduction which I guess is a good problem to have.
Title: Re: IRA Contribution for 2019
Post by: FIREball567 on January 01, 2019, 08:36:50 PM
@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?


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Title: Re: IRA Contribution for 2019
Post by: brooklynmoney on January 02, 2019, 01:05:39 AM
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.
Title: Re: IRA Contribution for 2019
Post by: FIREball567 on January 02, 2019, 06:48:01 AM
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.


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Title: Re: IRA Contribution for 2019
Post by: brooklynmoney on January 02, 2019, 06:56:12 AM
Taxes on the gains. I have other rollover IRAs that are pretax.
Title: Re: IRA Contribution for 2019
Post by: Eric222 on January 02, 2019, 12:17:43 PM
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).
Title: Re: IRA Contribution for 2019
Post by: DavidAnnArbor on January 02, 2019, 07:27:15 PM
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
Title: Re: IRA Contribution for 2019
Post by: thesis on January 03, 2019, 08:01:37 AM
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
Title: Re: IRA Contribution for 2019
Post by: brooklynmoney on January 03, 2019, 08:55:20 PM
Nice work people. We are also getting to take advantage of the stock markets ongoing holiday sale by investing now woohoo!
Title: Re: IRA Contribution for 2019
Post by: jpdx on January 04, 2019, 12:39:46 AM
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.
Title: Re: IRA Contribution for 2019
Post by: legalstache on January 04, 2019, 12:28:45 PM
Done, for my wife and myself. Felt good to get that money out of Ally and into the market.
Title: Re: IRA Contribution for 2019
Post by: MM_MG on January 05, 2019, 03:24:35 PM
Fully funded two IRAs on the 2nd...soon to be converted to Roth IRAs. 
Title: Re: IRA Contribution for 2019
Post by: oldtoyota on January 05, 2019, 05:11:56 PM
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
Title: IRA Contribution for 2019
Post by: FIREball567 on January 05, 2019, 05:18:16 PM
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.

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Title: Re: IRA Contribution for 2019
Post by: oldtoyota on January 06, 2019, 08:52:01 PM
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.

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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...
Title: Re: IRA Contribution for 2019
Post by: Arbitrage on January 07, 2019, 08:17:48 AM
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. 
Title: Re: IRA Contribution for 2019
Post by: phildonnia on January 07, 2019, 02:47:26 PM
I just fully funded my 2019 IRA contribution (6K this year) woohoo. Who is with me?

Done!
Title: Re: IRA Contribution for 2019
Post by: frugalkristen on January 13, 2019, 07:18:07 AM
Roth fully funded for 2019! 
Title: Re: IRA Contribution for 2019
Post by: brooklynmoney on January 13, 2019, 08:50:23 PM
Congrats again to all you fellow early birds. You know what they say about worms and such.
Title: Re: IRA Contribution for 2019
Post by: MM_MG on January 13, 2019, 09:15:25 PM
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.

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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. 
Title: Re: IRA Contribution for 2019
Post by: BrightFIRE on January 14, 2019, 01:25:25 PM
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.
Title: Re: IRA Contribution for 2019
Post by: Nick_Miller on January 14, 2019, 01:47:43 PM
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!!
Title: Re: IRA Contribution for 2019
Post by: frugalnacho on January 15, 2019, 08:24:20 AM
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.

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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.
Title: Re: IRA Contribution for 2019
Post by: MM_MG on January 16, 2019, 05:49:09 PM
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.  ;)
Title: Re: IRA Contribution for 2019
Post by: DreamFIRE on January 25, 2019, 08:35:24 AM

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).
Title: Re: IRA Contribution for 2019
Post by: jojoguy on January 26, 2019, 03:45:42 AM
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.
Title: Re: IRA Contribution for 2019
Post by: use2betrix on January 26, 2019, 06:39:23 AM
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.
Title: Re: IRA Contribution for 2019
Post by: WhiteTrashCash on January 26, 2019, 06:56:43 AM
For the purposes of dollar cost averaging, I space out my Roth IRA contributions over the course of 6 months each year.
Title: Re: IRA Contribution for 2019
Post by: AlexMar on January 27, 2019, 08:28:06 AM
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.

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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.