Author Topic: Maxed my IRA on Jan 1!  (Read 4848 times)

JLee

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Maxed my IRA on Jan 1!
« on: January 01, 2017, 11:16:36 AM »
A month or two ago, I wasn't sure I'd be able to make it -- but shortly after midnight, I sent in the $5,500 transfer request to max my Roth IRA. It won't actually happen until the 3rd...but a good feeling nonetheless! :D

Nemesis.

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Re: Maxed my IRA on Jan 1!
« Reply #1 on: January 01, 2017, 01:33:09 PM »
Congrats!
I've been holding the money from my Xmas bonus in my "high interest" savings account until the new new. It will take a few days to transfer but I will also max out my Roth for the year in a few days!

TomTX

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Re: Maxed my IRA on Jan 1!
« Reply #2 on: January 01, 2017, 01:45:08 PM »
My efund and IRA money are currently in Chase for 90 days to get the signup bonus...

minimalistgamer

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Re: Maxed my IRA on Jan 1!
« Reply #3 on: January 01, 2017, 02:50:30 PM »
Congratulations. I am going to max out my Roth IRA tomorrow as well! What a blessing!

Travis

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Re: Maxed my IRA on Jan 1!
« Reply #4 on: January 01, 2017, 09:24:17 PM »
If the math works out I'll max mine this month and DW's either next month or March.

Ladychips

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Re: Maxed my IRA on Jan 1!
« Reply #5 on: January 01, 2017, 10:01:57 PM »
Me too! Felt great.

Congratulations to you!

JLee

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Re: Maxed my IRA on Jan 1!
« Reply #6 on: January 02, 2017, 09:46:43 AM »
is there a reason you all prefer to max out your IRA with one contribution vs. contributing over the year (dollar cost averaging)? just curious.

Time in the market typically beats dollar cost averaging.

https://www.bogleheads.org/forum/viewtopic.php?f=1&t=91972

Travis

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Re: Maxed my IRA on Jan 1!
« Reply #7 on: January 02, 2017, 10:01:03 AM »
is there a reason you all prefer to max out your IRA with one contribution vs. contributing over the year (dollar cost averaging)? just curious.

But don't do it for your 401K if you're getting a match.

bigalsmith101

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Re: Maxed my IRA on Jan 1!
« Reply #8 on: January 02, 2017, 11:04:25 AM »
Got home from partying with my wife's family at 8am, got on my computer, and funded both mine and wifey's IRA for the 2017. I was stoked.
« Last Edit: January 02, 2017, 03:27:36 PM by bigalsmith101 »

bdoubleu

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Re: Maxed my IRA on Jan 1!
« Reply #9 on: January 02, 2017, 11:17:12 AM »
is there a reason you all prefer to max out your IRA with one contribution vs. contributing over the year (dollar cost averaging)? just curious.

But don't do it for your 401K if you're getting a match.

If your employer offers a "true-up" (where they eventually give you the total match you are owed), it's good to front-load the 401k.  A lot of employers don't, so you miss out on the match - in that case, I wouldn't front-load because you'd miss out on the match.

Nemesis.

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Re: Maxed my IRA on Jan 1!
« Reply #10 on: January 02, 2017, 12:50:14 PM »
is there a reason you all prefer to max out your IRA with one contribution vs. contributing over the year (dollar cost averaging)? just curious.

But don't do it for your 401K if you're getting a match.

If your employer offers a "true-up" (where they eventually give you the total match you are owed), it's good to front-load the 401k.  A lot of employers don't, so you miss out on the match - in that case, I wouldn't front-load because you'd miss out on the match.

There is also what's called a "safe harbor" contribution in which your employer makes a contribution whether you do or not.

starbuck

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Re: Maxed my IRA on Jan 1!
« Reply #11 on: January 02, 2017, 02:26:02 PM »
We normally set up automatic transactions to max our Roth IRAs over the calendar year, but we've received a large infusion of cash from selling our house, so I just maxed out both of our accounts for 2017 today. Check that one off the list. Now any extra funds will get swept directly into our taxable account.

JLee

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Re: Maxed my IRA on Jan 1!
« Reply #12 on: January 02, 2017, 07:02:05 PM »
is there a reason you all prefer to max out your IRA with one contribution vs. contributing over the year (dollar cost averaging)? just curious.

But don't do it for your 401K if you're getting a match.

If your employer offers a "true-up" (where they eventually give you the total match you are owed), it's good to front-load the 401k.  A lot of employers don't, so you miss out on the match - in that case, I wouldn't front-load because you'd miss out on the match.

Unless you plan on leaving your employer, in which case you may lose the match. My employer doesn't offer a true up option, so I distribute evenly throughout the year.

Urchina

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Re: Maxed my IRA on Jan 1!
« Reply #13 on: January 03, 2017, 03:40:47 PM »
is there a reason you all prefer to max out your IRA with one contribution vs. contributing over the year (dollar cost averaging)? just curious.

In addition to time in the market, you also pay fewer brokerage/transaction fees if you only buy once a year (assuming you're using a traditional brokerage and not Vanguard). For example, our TD Ameritrade account charges $7 per ETF transaction, which results in $7 x 12 = $84 less into the account we hold there each year. This a legacy account and my plan for 2017 is to move it to Vanguard and keep that $84, thankyouverymuch.

Slinky

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Re: Maxed my IRA on Jan 1!
« Reply #14 on: January 03, 2017, 05:05:48 PM »
I had the funds all earmarked for my Roth IRA contribution, but between a large restoration project finishing up and some general account rearranging/simplifying they are currently out "on loan". As soon as the dust settles and transfers get done, I'll ship my contribution off to Vanguard.

Mezzie

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Re: Maxed my IRA on Jan 1!
« Reply #15 on: January 03, 2017, 06:45:05 PM »
Me too! I should have my husband's funded by August. I can't quite swing both in one month, but it's nice to have one out of the way.

moof

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Re: Maxed my IRA on Jan 1!
« Reply #16 on: January 04, 2017, 10:55:46 AM »
In our case we just don't have that kind of cash lying around.  If it isn't bolted down it goes into an account.  Instead I spend some time at the end of December tosetup all the assorted accounts to hit my annual goal by the end of the year.  Everything else spare goes into the taxable (also setup to automatically hit my minimum savings goal for the year).

My friend has what he calls "Andy Luck Factor" where everything he touches turns to gold.  A number of years back he had read too much Zero Hedge and decided he needed a backup plan for when America fell apart.  He ended up putting all his money into New Zealand CD's to help establish a backup permanent residency and ended up making >50% on exchange rate fluctuations without even intending to in less than 2 years.  He retired to Montana where he lives in a "toy box", which is an apartment over a hangar with his plane, Lotus, and 1978 Land Cruiser.

I have the opposite luck.  My experience is that every time my savings account exceeds $5k something bad will happen to use it up.  Last year it was a leaky roof, before that some major vet bills, etc, etc.  I bought our house at the absolute peak of the local market in 2007 as well.  Somehow the bad luck trigger has not spilled over to my brokerage account, so I shovel money into it before I get to that stupid $5k bad luck trigger point.  So having a pile of automatic transfers to 401k/IRA/Roth/529/Taxable keeps as much money as I can spare in the market at all times  I probably should be prioritizing these and knocking out the spousal IRA before the Roth, but I am a fan of simple and automatic.

Paranoid?  Yes.  Works for me however.

Fomerly known as something

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Re: Maxed my IRA on Jan 1!
« Reply #17 on: January 09, 2017, 06:14:26 PM »
Yes.  My transfer takes "longer" as I have to backdoor Roth so it was done on like the 4th or the 5th.

minimalistgamer

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Re: Maxed my IRA on Jan 1!
« Reply #18 on: January 14, 2017, 04:45:30 PM »
Congratulations! We maximized our Roth IRA on January 5th. Its a great feeling! I won't have to think about contributing monthly! We intend to do the same for 2017. I will straight up transfer from my savings account.

Erica

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Re: Maxed my IRA on Jan 1!
« Reply #19 on: January 14, 2017, 05:50:24 PM »
GREAT JOB!!!!

You're on it!! And now you have the peace of mind that it's taken care of for the year

khangaroo

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Re: Maxed my IRA on Jan 1!
« Reply #20 on: January 14, 2017, 07:15:17 PM »
That's awesome!!

I was planning on maxing mine this week until a family member asked me if I wanted to buy her pristine 330xi for $4k - I couldn't pass that up! So I'll most likely save up money again and max it out in a few months.

FITortoise

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Re: Maxed my IRA on Jan 1!
« Reply #21 on: January 15, 2017, 03:14:42 PM »
Congrats! I'm maxing it out by the end of Jan :-)
A month or two ago, I wasn't sure I'd be able to make it -- but shortly after midnight, I sent in the $5,500 transfer request to max my Roth IRA. It won't actually happen until the 3rd...but a good feeling nonetheless! :D

FITortoise

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Re: Maxed my IRA on Jan 1!
« Reply #22 on: February 04, 2017, 09:05:44 AM »
Maxed out Roth IRA for 2017 in Jan :-)

freeedom

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Re: Maxed my IRA on Jan 1!
« Reply #23 on: February 08, 2017, 09:20:41 PM »
Maxing mine out at the end of the month... Congrats! Nice achievement.