Author Topic: Can I add to my Inherited IRA?  (Read 1812 times)

NinetyFour

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Can I add to my Inherited IRA?
« on: January 26, 2014, 09:27:41 AM »
I am considering investing about $1500 soon to lower my tax bill.  I would either send this to my retirement accounts or to a Traditional IRA.

Right now I have a Roth with a balance of >$10,000 (at least it was that high before the recent drop in the stock market).  I also have an Inherited IRA (Traditional) with a balance of about $22,000.  If I set up a separate Traditional IRA (at Vanguard) with a balance of just $1500, the expenses will be higher for this account since it won't be at the Admiral level.  This makes me wonder if I can just add to the Inherited IRA that is already established.  I'm thinking that the answer is probably no, but I thought I'd pose it here.

Thanks!

stuckinmn

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Re: Can I add to my Inherited IRA?
« Reply #1 on: January 26, 2014, 11:25:46 AM »
If you inherited it from your spouse you can treat it as your own ira and make contributions. Inherited from anyone else you cannot.

Saverocity

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Re: Can I add to my Inherited IRA?
« Reply #2 on: January 26, 2014, 11:26:47 AM »
My question would be what are you buying into at $1500 since many of the funds that have Admiral options still want $3K buy in?

Also, just for the sake of perspective, the difference between VTSAX (0.05%)and VTSMX (0.17%) is the difference between paying 75 cents and $2.55 per year, which hopefully won't break the bank.

Frankies Girl

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Re: Can I add to my Inherited IRA?
« Reply #3 on: January 26, 2014, 11:32:04 AM »
Nope. I have one from my dad, and you can't add to it with your own funds. It's basically locked down and you can only take out at this point.

NinetyFour

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Re: Can I add to my Inherited IRA?
« Reply #4 on: January 27, 2014, 06:11:18 AM »
Thanks for the responses.

Frankies Girl--I remembered that you recently dealt with these issues, so I knew you would have the answer!

Saverocity--yes, as I said, the $1500 would not get me to the Admiral level.  Hence, my inquiry as to whether I could just toss the $1500 in with the other inherited IRA since it is already at the Admiral level.  But, alas, it looks like that is not an option.

I think what I will do it open a separate Traditional IRA with Vanguard and invest in VTSMX.

Wait a sec--hold the phone.  I already maxed out ($6500--yeah, I'm old) my 2013 Roth IRA.  So I can't put any $$ into a Traditional IRA for 2013, can I?  Shucks.