Lump-sum max contribution to Traditional IRA?

[jeromedawg]

Hey all,

I was wondering, if it's within our means/budget that we can, if it's best just to go ahead and max the $5500 contribution to the Traditional IRA in a single lump-sum (or even two) now, versus spreading the contributions out per month for the rest of the year.

I actually have the same question for Roth IRAs as well, even though I don't plan on contributing to the Roth at this point in time. But is there an advantage to doing this especially on a non tax advantaged account or vice versa?

[waltworks]

Statistically, Lump Sum beats DCA beats trying to market time. If you are loss-averse, DCA may be emotionally easier and less stressful, however.

The more time in the market, the better.

-W

Hey all,

I was wondering, if it's within our means/budget that we can, if it's best just to go ahead and max the $5500 contribution to the Traditional IRA in a single lump-sum (or even two) now, versus spreading the contributions out per month for the rest of the year.

I actually have the same question for Roth IRAs as well, even though I don't plan on contributing to the Roth at this point in time. But is there an advantage to doing this especially on a non tax advantaged account or vice versa?

[CtrlMagicDel]

I just maxed mine (Roth but I still think it's applicable) out today and am planning on front loading my 401K contributions this year to the extent it is possible after reading this Mad Fientist Article: http://www.madfientist.com/front-loading/

The more time you can have investments in tax-free account the better so I don't see a compelling reason not to do so if it is within your means.