has anyone withdrawn/redeposited from their Vanguard Roth account?

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bling
Posts: 58
Joined: Sat Jan 21, 2012 12:49 pm

has anyone withdrawn/redeposited from their Vanguard Roth account?

Post by bling » Tue Nov 07, 2017 7:19 pm

I have unused 529 space that i'd like to max out. However, I won't have enough money left over from the remaining paychecks for the year after expenses. I've read that it's possible to withdraw your Roth contributions for the year and redeposit them back in before April. If I do this, then I'd be able to save enough between now and April to redeposit back to the Roth as well as max out my 529 space.

Has anyone does this before in a Vanguard account? Any gotchas?

Alternatively I can sell some of my funds, but it would be taxable, which is why I'm investigating other avenues.

Thanks in advance!

DSInvestor
Posts: 10624
Joined: Sat Oct 04, 2008 11:42 am

Re: has anyone withdrawn/redeposited from their Vanguard Roth account?

Post by DSInvestor » Tue Nov 07, 2017 7:21 pm

What about collecting the dividends in your funds in taxable? If not reinvested, it will reduce the need to sell shares.

Do you have any emergency cash reserve?

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Flobes
Posts: 854
Joined: Tue Feb 16, 2010 12:40 am

Re: has anyone withdrawn/redeposited from their Vanguard Roth account?

Post by Flobes » Tue Nov 07, 2017 8:09 pm

bling wrote:
Tue Nov 07, 2017 7:19 pm
I've read that it's possible to withdraw your Roth contributions for the year and redeposit them back in before April.
I'm not a fan of treating a Roth account like an ATM.

That said, read yesterday's thread about how this can go wrong if not handled right:
How Can I Return Withdrawn Roth Contributions After 60 Days?

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