Author Topic: Vanguard 10K Minimum Accounts Question  (Read 2772 times)

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Vanguard 10K Minimum Accounts Question
« on: October 18, 2015, 10:03:41 AM »
If I were to open a taxable account at Vanguard with 10k or more, could I then open a separate Traditional IRA account with $6,500?

MDM

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Re: Vanguard 10K Minimum Accounts Question
« Reply #1 on: October 18, 2015, 11:15:11 AM »
The ability to make deductible contributions to a traditional IRA is unaffected by your taxable holdings or lack thereof.  See https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits.

Vanguard (or Fidelity, or Schwab, or...) will be happy to provide any combination of taxable, tIRA, Roth, etc. accounts for you - just make sure the IRS regulations are observed. ;)

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Re: Vanguard 10K Minimum Accounts Question
« Reply #2 on: October 18, 2015, 11:27:12 AM »
The ability to make deductible contributions to a traditional IRA is unaffected by your taxable holdings or lack thereof.  See https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits.

Yes, I understand that part. What I'm asking about is the Vanguard 10k minimum.

Vanguard (or Fidelity, or Schwab, or...) will be happy to provide any combination of taxable, tIRA, Roth, etc. accounts for you - just make sure the IRS regulations are observed. ;)

Exactly. I assume that taxed and non-taxed funds cannot be commingled. Even if they could, I would not want to try to keep track of it.

So would Vanguard let me, for example, open a taxable account in VBTLX with 10k, and then open a traditional IRA with $6,500 in VTSAX?

In other words, must each different Vanguard investment be 10k minimum?

tallen

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Re: Vanguard 10K Minimum Accounts Question
« Reply #3 on: October 18, 2015, 11:38:39 AM »
Vanguard IRA only has a 1k minimum to open (although some of the funds have a 3k minimum to invest in so your investment choices with only 1k is limited)

MDM

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Re: Vanguard 10K Minimum Accounts Question
« Reply #4 on: October 18, 2015, 11:47:05 AM »
In other words, must each different Vanguard investment be 10k minimum?
Vanguard IRA only has a 1k minimum to open (although some of the funds have a 3k minimum to invest in so your investment choices with only 1k is limited)

From https://investor.vanguard.com/mutual-funds/fees,
Quote
The following minimums apply to individual and joint accounts, Roth and traditional IRAs, UGMA/UTMA accounts, and most other account types.
Investor Shares
    $1,000 for Vanguard Target Retirement Funds and Vanguard STARŪ Fund.
    $3,000 for most other Vanguard funds.**

Admiral Shares
    $10,000 for most index funds and tax-managed funds.
    $50,000 for most actively managed funds.
    $100,000 for certain sector-specific index funds.

The minimums apply per fund per account.  E.g., you might have $16K VTSAX (admiral class) in taxable but if you have only $9K in an IRA you would have VTSMX (investor class), not VTSAX.

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Re: Vanguard 10K Minimum Accounts Question
« Reply #5 on: October 18, 2015, 11:59:57 AM »
tallen, thank you for that info, very helpful!

Thanks, MDM, I bookmarked it. Between you and tallen, now I know what I need to know.