Vanguard And Yearly IRA Contributions

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Geneyus
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Vanguard And Yearly IRA Contributions

Post by Geneyus » Wed Jan 04, 2017 4:12 pm

I was about to contribute to my Roth IRA for the 2017 year, and it shows I can invest the full amount for the year 2016. I'm pretty sure I invested the full $5,500 for 2016 around April with Scottrade, right before I transferred my Roth to Vanguard to buy their funds. My question is, will Vanguard show that I already contributed if I did it at another broker? Are we sure the contribution information carries over? I'm at work right now, but I guess I'm going to have to dig for my old Scottrade information to confirm it was for 2016.

Spirit Rider
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Re: Vanguard And Yearly IRA Contributions

Post by Spirit Rider » Wed Jan 04, 2017 4:43 pm

I would be very surprised if such information would ever transfer with the IRA assets between any two custodians.

enki
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Re: Vanguard And Yearly IRA Contributions

Post by enki » Wed Jan 04, 2017 6:53 pm

I'm not aware of any IRA custodians that transfer contribution information with accounts. So going from A to B, B will not know what yearly contributions have already been made. But don't confuse that as meaning you can double up for one year...

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celia
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Re: Vanguard And Yearly IRA Contributions

Post by celia » Wed Jan 04, 2017 6:57 pm

...because you can't (legally).
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.

lazylarry
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Re: Vanguard And Yearly IRA Contributions

Post by lazylarry » Wed Jan 04, 2017 7:19 pm

...because you can't (legally).
It won't, I had a Roth at Fidelity and contributed some and Vanguard still indicated that I could contribute further. Yes you should make sure you did not already contribute for 2016.
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Alan S.
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Re: Vanguard And Yearly IRA Contributions

Post by Alan S. » Wed Jan 04, 2017 7:44 pm

If you are in doubt and did not keep Scottrade statements or other notes at the time, call Scottrade and check. You might have made a contribution in April, but it could have been for 2015, not 2016.

If you make a contribution now and end up with a double contribution, Form 5498 issued by each custodian in May will tell both you and the IRS that you have an excess contribution. You will then have to remove 5500 plus earnings from your Vanguard account by the extended due date to avoid an excise tax, and VG would probably want you to remove the contribution you made after they received the account, because they have no way to calculate the earnings on the April contribution.

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Geneyus
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Re: Vanguard And Yearly IRA Contributions

Post by Geneyus » Wed Jan 04, 2017 7:49 pm

I was pretty sure I contributed for 2016, so I'm glad to know that info wouldn't transfer over. I'll go ahead and contribute for 2017, but it was confusing.

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ElJay
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Re: Vanguard And Yearly IRA Contributions

Post by ElJay » Wed Jan 04, 2017 7:56 pm

Vanguard doesn't know anything about contributions made at other custodians. The IRS and you will know via form 5498.

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