Author Topic: Automatic Individual Roth 401k Contributions?  (Read 150 times)

Drew1204

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Automatic Individual Roth 401k Contributions?
« on: June 04, 2019, 05:13:46 PM »
Hello,

I am a newbie and just recently opened an Individual Roth 401k with Vanguard and I am self employed.

Is there a way to make automatic monthly contributions to meet the maximum of $19k for 2019?

The gentleman I spoke with on the phone that helped me get the account setup said there is no way to make automatic monthly contributions like with a Roth IRA because it is much more difficult to withdraw the money once it is in.

I figured there may be a payroll company that it can be setup with or maybe something else I am not thinking of?

I wanted to try to make the investing part as seamless and hands off and automatic as possible, and depositing $1,600 / mo isn't very hands off if I have to login and transfer it manually every month.

How is every other business owner doing this? Are most business owners just depositing the $19k in cash immediately? What about those that don't have the $19k in cash and have to or want to DCA and deposit monthly?

aetheldrea

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Re: Automatic Individual Roth 401k Contributions?
« Reply #1 on: June 04, 2019, 08:44:49 PM »
Dollar cost averaging has been proven to be a losing strategy. If you have the money, just put it in. Paying a payroll company to deposit your money for you seems a waste. If once a month is too often, how about logging in every other month? Logging into your account and transferring money six times a year doesn't seem like a hardship that I would want to outsource.