Author Topic: IRA Contribution for 2019  (Read 4512 times)

brooklynmoney

  • Pencil Stache
  • ****
  • Posts: 707
  • Location: Crooklyn
IRA Contribution for 2019
« on: January 01, 2019, 08:21:27 AM »
I just fully funded my 2019 IRA contribution (6K this year) woohoo. Who is with me?

Goldy

  • Bristles
  • ***
  • Posts: 284
Re: IRA Contribution for 2019
« Reply #1 on: January 01, 2019, 11:50:34 AM »
We funded one this morning and will do the second soon.

brooklynmoney

  • Pencil Stache
  • ****
  • Posts: 707
  • Location: Crooklyn
Re: IRA Contribution for 2019
« Reply #2 on: January 01, 2019, 11:55:16 AM »
Congrats Goldy. Funding 2 right away is doubly impressive.

frugalkristen

  • Stubble
  • **
  • Posts: 139
Re: IRA Contribution for 2019
« Reply #3 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...  :/

FIREball567

  • Stubble
  • **
  • Posts: 141
  • Location: USA
IRA Contribution for 2019
« Reply #4 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?


Sent from my iPhone using Tapatalk

LWYRUP

  • Handlebar Stache
  • *****
  • Posts: 1059
Re: IRA Contribution for 2019
« Reply #5 on: January 01, 2019, 02:24:58 PM »
Boom, $12k for me and wife.  Nice to get that money out of our savings account. 

letired

  • Pencil Stache
  • ****
  • Posts: 824
  • Location: Texas
    • Needs More Glitter
Re: IRA Contribution for 2019
« Reply #6 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.

DreamFIRE

  • Handlebar Stache
  • *****
  • Posts: 1593
Re: IRA Contribution for 2019
« Reply #7 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.

brooklynmoney

  • Pencil Stache
  • ****
  • Posts: 707
  • Location: Crooklyn
Re: IRA Contribution for 2019
« Reply #8 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.

FIREball567

  • Stubble
  • **
  • Posts: 141
  • Location: USA
IRA Contribution for 2019
« Reply #9 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?


Sent from my iPhone using Tapatalk

brooklynmoney

  • Pencil Stache
  • ****
  • Posts: 707
  • Location: Crooklyn
Re: IRA Contribution for 2019
« Reply #10 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.

FIREball567

  • Stubble
  • **
  • Posts: 141
  • Location: USA
Re: IRA Contribution for 2019
« Reply #11 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?


Sent from my iPhone using Tapatalk

brooklynmoney

  • Pencil Stache
  • ****
  • Posts: 707
  • Location: Crooklyn
Re: IRA Contribution for 2019
« Reply #12 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.

FIREball567

  • Stubble
  • **
  • Posts: 141
  • Location: USA
Re: IRA Contribution for 2019
« Reply #13 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.


Sent from my iPhone using Tapatalk

brooklynmoney

  • Pencil Stache
  • ****
  • Posts: 707
  • Location: Crooklyn
Re: IRA Contribution for 2019
« Reply #14 on: January 02, 2019, 06:56:12 AM »
Taxes on the gains. I have other rollover IRAs that are pretax.

Eric222

  • Pencil Stache
  • ****
  • Posts: 902
Re: IRA Contribution for 2019
« Reply #15 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).

DavidAnnArbor

  • Handlebar Stache
  • *****
  • Posts: 2266
  • Age: 58
  • Location: Ann Arbor, Michigan
Re: IRA Contribution for 2019
« Reply #16 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

thesis

  • Bristles
  • ***
  • Posts: 407
Re: IRA Contribution for 2019
« Reply #17 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

brooklynmoney

  • Pencil Stache
  • ****
  • Posts: 707
  • Location: Crooklyn
Re: IRA Contribution for 2019
« Reply #18 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!

jpdx

  • Pencil Stache
  • ****
  • Posts: 760
Re: IRA Contribution for 2019
« Reply #19 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.

legalstache

  • Stubble
  • **
  • Posts: 124
Re: IRA Contribution for 2019
« Reply #20 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.

MM_MG

  • Stubble
  • **
  • Posts: 207
Re: IRA Contribution for 2019
« Reply #21 on: January 05, 2019, 03:24:35 PM »
Fully funded two IRAs on the 2nd...soon to be converted to Roth IRAs. 

oldtoyota

  • Magnum Stache
  • ******
  • Posts: 3179
Re: IRA Contribution for 2019
« Reply #22 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
« Last Edit: January 06, 2019, 08:51:12 PM by oldtoyota »

FIREball567

  • Stubble
  • **
  • Posts: 141
  • Location: USA
IRA Contribution for 2019
« Reply #23 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.

Sent from my iPhone using Tapatalk
« Last Edit: January 05, 2019, 05:20:04 PM by degrom7 »

oldtoyota

  • Magnum Stache
  • ******
  • Posts: 3179
Re: IRA Contribution for 2019
« Reply #24 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.

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...

Arbitrage

  • Handlebar Stache
  • *****
  • Posts: 1405
Re: IRA Contribution for 2019
« Reply #25 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. 

phildonnia

  • Bristles
  • ***
  • Posts: 365
Re: IRA Contribution for 2019
« Reply #26 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!

frugalkristen

  • Stubble
  • **
  • Posts: 139
Re: IRA Contribution for 2019
« Reply #27 on: January 13, 2019, 07:18:07 AM »
Roth fully funded for 2019! 

brooklynmoney

  • Pencil Stache
  • ****
  • Posts: 707
  • Location: Crooklyn
Re: IRA Contribution for 2019
« Reply #28 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.

MM_MG

  • Stubble
  • **
  • Posts: 207
Re: IRA Contribution for 2019
« Reply #29 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.

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. 

BrightFIRE

  • Stubble
  • **
  • Posts: 223
  • Location: Philadelphia
Re: IRA Contribution for 2019
« Reply #30 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.

Nick_Miller

  • Handlebar Stache
  • *****
  • Posts: 1655
  • Location: A sprawling estate with one of those cool circular driveways in the front!
Re: IRA Contribution for 2019
« Reply #31 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!!

frugalnacho

  • Walrus Stache
  • *******
  • Posts: 5055
  • Age: 41
  • Location: Metro Detroit
Re: IRA Contribution for 2019
« Reply #32 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.

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.

MM_MG

  • Stubble
  • **
  • Posts: 207
Re: IRA Contribution for 2019
« Reply #33 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.  ;)

DreamFIRE

  • Handlebar Stache
  • *****
  • Posts: 1593
Re: IRA Contribution for 2019
« Reply #34 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).

jojoguy

  • Bristles
  • ***
  • Posts: 294
Re: IRA Contribution for 2019
« Reply #35 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.

use2betrix

  • Handlebar Stache
  • *****
  • Posts: 2492
Re: IRA Contribution for 2019
« Reply #36 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.

WhiteTrashCash

  • Handlebar Stache
  • *****
  • Posts: 1983
Re: IRA Contribution for 2019
« Reply #37 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.

AlexMar

  • Bristles
  • ***
  • Posts: 262
Re: IRA Contribution for 2019
« Reply #38 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.

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.