Author Topic: tIRA question  (Read 920 times)

doneby35

  • Bristles
  • ***
  • Posts: 297
tIRA question
« on: November 26, 2016, 05:21:54 PM »
If I was to open a tIRA account with Fidelity to invest in their total stock market index fund, would it take into consideration the amount of money that I have in my 401k which happens to be a S&P 500 index fund with them, to determine whether I get to choose the investor class with 0.17 expense ratio and a minimum of $3,000 investment or the premium class with 0.05 expense ratio and a minimum of $10,000 investment? Or are they just two separate things and I can only start with the investor class since the most I can contribute per year is $5,500?

VoteCthulu

  • Bristles
  • ***
  • Posts: 409
Re: tIRA question
« Reply #1 on: November 26, 2016, 06:30:03 PM »
You should be able to buy the regular fund this year, then next year after making your contribution exchange the $11,000 into the better fund.

AlmstRtrd

  • Stubble
  • **
  • Posts: 183
Re: tIRA question
« Reply #2 on: November 26, 2016, 06:45:44 PM »
If you have the funds to invest now, you can contribute $5,500 to a tIRA now for 2016 and then another $5,500 after January 1st as your 2017 contribution. Sounds like you are just starting out so make sure you have a decent emergency fund on hand before you prioritize saving .12% on fund expenses.

Ah, and one thing that I always did if I knew the tIRA was going to make sense was to contribute as early as possible. In other words, you'd have from 1/1/17 to 4/15/18 to make your 2017 contribution. Over many years, getting that money in 15 months earlier adds up (never did the math but it has to be a considerable amount over time).

Good luck!

doneby35

  • Bristles
  • ***
  • Posts: 297
Re: tIRA question
« Reply #3 on: November 26, 2016, 07:10:23 PM »
Awesome. Thank you both for the info.