Author Topic: Lump-sum max contribution to Traditional IRA?  (Read 1352 times)

jeromedawg

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Lump-sum max contribution to Traditional IRA?
« on: January 09, 2015, 02:12:41 PM »
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

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Re: Lump-sum max contribution to Traditional IRA?
« Reply #1 on: January 09, 2015, 02:36:07 PM »
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

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Re: Lump-sum max contribution to Traditional IRA?
« Reply #2 on: January 09, 2015, 02:37:15 PM »
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.