Author Topic: Help-Stupid idea to pump money into a Traditional IRA?  (Read 961 times)

kilogulf

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Help-Stupid idea to pump money into a Traditional IRA?
« on: August 19, 2017, 04:35:20 PM »
I just did a rollover of 3 previous 401kís into a Vanguard Traditional IRA.  My asset allocation is 100% VTSAX.  Now what do I do?  Itís all tax deferred funds in there now and itís just sitting there.  If I set up monthly contributions from my post-tax dollars, then itís a Roth.  Can you mix pre-tax and post-tax dollars into a Traditional?

 I currently do not have an employee sponsored 401k because itís a new employer and I have to wait until the first of the year to enroll.  I am told my new employer will match 3% on a SIMPLE IRA at that time.  Iím not sure I will be able to dovetail that account into my Vanguard, so I will have yet another 401k with worth peanutsÖat least for a while.

It's driving me nuts just watching my 880.611 shares of VTSAX bounce up and down every day.  I want to buy more shares but I don't want to pay taxes on post-tax contributions.

Thanks for any guidance....

Ken in Dallas, Tx

JLee

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Re: Help-Stupid idea to pump money into a Traditional IRA?
« Reply #1 on: August 19, 2017, 05:24:14 PM »
You can contribute your post-tax dollars to a Traditional IRA and then take a tax deduction when you file taxes.

kilogulf

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Re: Help-Stupid idea to pump money into a Traditional IRA?
« Reply #2 on: August 19, 2017, 06:41:04 PM »
Thanks JLee.  I would imagine that Vanguard will provide a statement at the end of the year showing pre and post tax contributions?  This is my first time with Vanguard as well as being in this situation.

MMbergmann

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Re: Help-Stupid idea to pump money into a Traditional IRA?
« Reply #3 on: August 19, 2017, 08:11:57 PM »
To my knowledge, noone tracks your pre and post tax contributions but yourself and maybe your tax advisor if you give him the information. I would keep track of this myself if I were you and then if you get some kind of statement, then you could compare it for accuracy.

kilogulf

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Re: Help-Stupid idea to pump money into a Traditional IRA?
« Reply #4 on: August 20, 2017, 10:39:36 AM »
Thanks MMbergmann.  Ya I'm not the type to trust all that to a statement from Vanguard.  I will be able to capture that information for my tax guy without much issue.  Thanks for chiming in...


Dicey

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Re: Help-Stupid idea to pump money into a Traditional IRA?
« Reply #5 on: August 20, 2017, 12:33:16 PM »
1. Stop watching your accounts every day.
2. Next time you change jobs, negotiate on this point. No reason to make you sit out a year.

kilogulf

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Re: Help-Stupid idea to pump money into a Traditional IRA?
« Reply #6 on: August 20, 2017, 03:27:17 PM »
Quote
1. Stop watching your accounts every day.

LOL Dicey....I'm busted!  :-)