Bogleheads.org

Here’s the situation:

Me
W2
Max 401k, Max IRA

Wife
W2
Max IRA, Pension but we chose not to go with 401k due to weird outsourcing to sketch company

Wife has potential side hustle that will be 1099’ed and may make 10K for the year.

We don’t need the money so what’s the best way to avoid taxes? If retirement account is answer, what is best solution that maxes contribution and simple to set up?

Tramper Al wrote: ↑Sun Jan 22, 2023 12:58 pm You could always just transfer $6500 cash (assuming available) into the Roth. Then, simultaneously sell the position in taxable while you buy it in the Roth, so no change in market exposure, no missing out.

However, selling in taxable will either 1) result in a taxable capitol gain - do you want that? or 2) result in a harvested taxable loss - but will run you into wash rules if you buy the same security in the Roth within 30 days before/after. In that case it is usually preferable to identify a different security/instrument that you judge quite comparable, just not identical.

Thanks. This is what I was looking for and seems so obvious in hindsight.

First off, I am not trying to avoid taxes on the brokerage account.

I have $6,500 FZROX in a brokerage account. I want to transfer the amount to Fidelity IRA.

As I understand it, I have to sell it in the brokerage on Day 1 COB, and buy it in the IRA on Day 2 COB.

Is there any way to do this without the one day lag time and potential gain/loss on that lag?

My main concern is the unknown business can just walk away with all the money. The school system has essentially outsourced/sold? all of the the DCP plans to VRSI (vrsifinancial.com), which is named in a way that government employee customers may conflate it with VRS, the state agency that runs the pension plan. The school system is so small that when my wife asks any question related to 403/457/etc, she is referred to a salesperson with VRSI, not a school employee. VRSI agents are brokers for GWN Securities. The option for the 457 I believe is the better investment (all Vanguard indices) but comes with what I perceive as risk. All of the money is in the custody of GWN Securities. What's to stop one employee there from dipping into that mon...

Bump.

My wife recently changed employment from one public school system in Virginia to another. She has a pension as well as the option for a 457. Apparently each locality chooses its 457 plan administrator but Virginia runs the pension. The previous employer's 457 was administrated by a well-known organization, ICMA-RC. The new one is a for-profit entity (FPE) I've never heard of before and Googling didn't help much. The new one simply invests your money in Vanguard funds BUT all of the money is in the custody and control of FPE and not the individual. Vanguard doesn't know the individual exists. The individual is only on record at FPE. All this combined with talking to FPE rep scares us about contributing so much money to an such an unknown. Is...