Roth IRA - so who hit 'enter' at 12:01AM this morning?

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elainet7
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by elainet7 »

making contributions early in the year just sweetens compounded profits to a greater extent-wise move always
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BroIceCream
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by BroIceCream »

noraz123 wrote: Wed Jan 01, 2020 1:03 pm 10:00 AM I made the contributions to our regular IRA accounts. Once settled, will transfer to Roth IRAs to complete the backdoor 2020 contributions.
Ditto. I looked at the "convert to Roth" button, and it showed my IRA contribution balance ready to go for an immediate conversion. I think I'll wait until tomorrow morning for the 2nd step backdoor to the Roth.

My annual plans to contribute to IRA : -- my first 7K of my incoming dividends+tax refunds are allocated for next years IRA contribution. I park them in a nice bond fund or CD which will be timed to cash out in December for next Jan.1 contribution. <repeat for spousal account>
sapper1371
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by sapper1371 »

I did...but forgot I have to do backdoor :oops:

Looks like TDA will allow me to transfer between my IRA and Roth accounts (and choose deposit type) so will it be a problem if it just let the current transfer into Roth go through...then transfer to IRA...then backdoor to Roth?
Small Law Survivor
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Small Law Survivor »

I'm planning to do a substantial TIRA to Roth conversion in 2020, but it never crossed my mind to do it (or that anyone would do it) in the wee hours of January 1st!
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mattshwink
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by mattshwink »

Roughly 10AM here for both mine and my wife's IRAs. Will see when the EFT goes through and I can convert to Roth IRAs. Usually takes a couple of days.
martiansteeler
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by martiansteeler »

Fidelity allowed me to contribute at 9:15pm PST last night.
AllMostThere
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by AllMostThere »

Not 12:01 AM this morning. More like 7 PM this evening. Initiated $7K each into my & DW's tIRA's, which is step one towards our backdoor ROTH contributions for 2020. :beer
Also, opened myself a Fidelity HSA and initiated $1K HSA 2020 contribution catch-up for myself as I turn 55 this year. :beer :beer.
None of this would have been known to me had I not listened and learned from this awesome Boglehead forum. :beer :beer :beer
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Tamarind
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Tamarind »

Nope. My contributions are on autopilot over the course of the year.
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Spirit Rider »

sapper1371 wrote: Wed Jan 01, 2020 6:23 pm I did...but forgot I have to do backdoor :oops:

Looks like TDA will allow me to transfer between my IRA and Roth accounts (and choose deposit type) so will it be a problem if it just let the current transfer into Roth go through...then transfer to IRA...then backdoor to Roth?
It needs to be a recharacterization from a traditional IRA to a Roth IRA. You need to verify with TD Ameritrade that what you are describing is actually a recharacterization.
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dwickenh
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by dwickenh »

I'm going to do a 31K conversion this year, but will likely wait for a RBD to do it:)
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rh00p
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by rh00p »

Not me. All my contributions in tax-deferred, tax-free and taxable are via auto pay. Best thing I ever did.
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by JediMisty »

Jack FFR1846 wrote: Wed Jan 01, 2020 1:52 pm Nope. Won't contribute to the 2019 Roth until our tax returns are complete and we know how much we can contribute. I expect to be somewhere in the phase out zone. Had to remove excess 2 years ago for the first time. Too much of a hassle. I'll just wait.
+1. Also in the phase out zone. In 2018 I didn't take any weeks off without pay for the first time in decades. Had to remove excess contributions and earnings in April when I realized my mistake. Hassle not worth the extra time in the market.
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by MotoTrojan »

BroIceCream wrote: Wed Jan 01, 2020 5:59 pm
noraz123 wrote: Wed Jan 01, 2020 1:03 pm 10:00 AM I made the contributions to our regular IRA accounts. Once settled, will transfer to Roth IRAs to complete the backdoor 2020 contributions.
Ditto. I looked at the "convert to Roth" button, and it showed my IRA contribution balance ready to go for an immediate conversion. I think I'll wait until tomorrow morning for the 2nd step backdoor to the Roth.

My annual plans to contribute to IRA : -- my first 7K of my incoming dividends+tax refunds are allocated for next years IRA contribution. I park them in a nice bond fund or CD which will be timed to cash out in December for next Jan.1 contribution. <repeat for spousal account>
Why not invest the cash earmarked for next years Roth in taxable? If it grows you pay tax, but you made money (CD has as much if not more tax). If it’s down you just tax-loss harvest it into the IRA and come out ahead of an imaginary situation where IRS let your contribute the year early/before.
scubadiver
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by scubadiver »

Was taking a selfie with my wife and kids at 12:01am. No real good excuses since then though. Will probably get around to making our first Roth contribution for the year when I get my paycheck next week.
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F150HD
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by F150HD »

robertfromtx wrote: Wed Jan 01, 2020 5:24 pm I'm attempting to make a $6,000 roth ira contribution for 2020 from my vanguard taxable settlement fund. I keep getting an error that says "We can't accept this transfer because the amount exceeds your current funds available to withdraw."

The balance in the settlement fund is $6,007.72 and the funds have been there for 30+ days, so they're collected. The "funds available to trade" is $6,007.72. (accounts aren't new either, all opened in 2018)

Any ideas why I'm getting this error?
Try either of the methods below. It'll hop you thru a few hoops. Even though that $$ you listed has been seasoned for a month, its still in a 'fund' (the Settlement Fund) so you're moving from that fund to your Roth IRA as a 'contribution'.

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Cubicle
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Cubicle »

Went to bed before midnight, like I have been for the past 5+ years.
Woke up late at 9am today since no work.
Went to the ATM to deposit a 1099 check dated 01-01-2020 that was written out last night from my main source of yearly income. Specifically not to get the income in 2019 for several purposes...
--Logged into Fidelity to fund my 2020 HSA
--Logged into Vanguard to move money into my traditional IRA in preparation for a backdoor conversion on Friday
--Had to dig up my Vanguard solo 401K password so when the 1099 funds settle can max my 2020 401k contributions

After all that settles, slice out a chunk for January 1040ES payments, bulk up the day to day checking account, then dump the rest into my Vanguard taxable account. I'm very lucky that I can defer a large chunk of income until New Year's Day. So today was my largest paycheck of the year. Like last year.
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amitb00
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by amitb00 »

Made IRA contribution at 6 pm on 1-Jan.
expat
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by expat »

#happytalk ugh
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BroIceCream
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by BroIceCream »

MotoTrojan wrote: Wed Jan 01, 2020 8:37 pm
BroIceCream wrote: Wed Jan 01, 2020 5:59 pm
noraz123 wrote: Wed Jan 01, 2020 1:03 pm 10:00 AM I made the contributions to our regular IRA accounts. Once settled, will transfer to Roth IRAs to complete the backdoor 2020 contributions.
My annual plans to contribute to IRA : -- my first 7K of my incoming dividends+tax refunds are allocated for next years IRA contribution. I park them in a nice bond fund or CD which will be timed to cash out in December for next Jan.1 contribution. <repeat for spousal account>
Why not invest the cash earmarked for next years Roth in taxable? If it grows you pay tax, but you made money (CD has as much if not more tax). If it’s down you just tax-loss harvest it into the IRA and come out ahead of an imaginary situation where IRS let your contribute the year early/before.
In my taxable, I am consistently under-weighted in my fixed/bond - so generally my new money goes into bonds to keep my allocation closer to my plan.
livesoft
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by livesoft »

livesoft wrote: Wed Jan 01, 2020 2:42 pmI'm not doing this to make money. I'm doing this just to post that I will buy before anybody else at bogleheads.org. Although maybe now that you know that, you will buy in pre-market trading. :twisted:
So I see the contribution is ready and available to buy something now before the market opens. However, things are already up by a few tenths of a percent, so I don't know if I really want to buy at the opening cross.
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BrownEyedGirl_27
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by BrownEyedGirl_27 »

I set up a transfer to contribute to my account at 6 pm. Woohoo 🎉
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Sigz
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Sigz »

I just submitted $6k for both myself and my wife's Roth IRA.

I know anything can happen in the market (especially now), but we're not reading the gloom and doom (or the pure positive articles) as we're thinking long term with 20+ years until retirement. Stay the course!
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Blues
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Blues »

I did the annual conversion from tIRA to Roth on my wife's accounts, but being the lazy so and so that I am, I waited until about 8 a.m. to do it on 1/1.

Should be done in three more years at the rate I'm performing the conversions to prevent moving up in tax bracket.
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robertfromtx
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by robertfromtx »

F150HD wrote: Wed Jan 01, 2020 9:21 pm
robertfromtx wrote: Wed Jan 01, 2020 5:24 pm I'm attempting to make a $6,000 roth ira contribution for 2020 from my vanguard taxable settlement fund. I keep getting an error that says "We can't accept this transfer because the amount exceeds your current funds available to withdraw."

The balance in the settlement fund is $6,007.72 and the funds have been there for 30+ days, so they're collected. The "funds available to trade" is $6,007.72. (accounts aren't new either, all opened in 2018)

Any ideas why I'm getting this error?
Try either of the methods below. It'll hop you thru a few hoops. Even though that $$ you listed has been seasoned for a month, its still in a 'fund' (the Settlement Fund) so you're moving from that fund to your Roth IRA as a 'contribution'.
I was getting to the very end of those steps and still getting the error.

I ended up just pulling money from VMMXX in the taxable account. Settlement fund and VMMXX earn about the same so no difference to me.

All funded for 2020! Thank you for responding.
JimmyD
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by JimmyD »

Not me. Need to bump our cash savings up another $9,000 before I work on our backdoor Roths. Should be ready to fund them in April or May.
ByThePond
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by ByThePond »

Did our annual conversion during my first morning cup of joe in 2020.
finfire
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by finfire »

nope. Had a good old lie-in, nice breakfast and time with the family. No computer/finances time for me on holidays.
deltaneutral83
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by deltaneutral83 »

Would recommend knowing the difference and risk of doing this on a Roth vs HSA. Much trickier on the HSA unless you know you will have an HDHP for 12 months straight, i.e. the whole year.
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Wiggums
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Wiggums »

finfire wrote: Thu Jan 02, 2020 10:13 am nope. Had a good old lie-in, nice breakfast and time with the family. No computer/finances time for me on holidays.
Spent time with the family as well.
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changingtimes
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by changingtimes »

I didn't do it at 12:01, but I did begin the process for my $7000 Roth contribution (needed to sell some bonds in taxable first), and also did a small Roth conversion. This is my first year having an HSA, and it comes out of my paycheck pre-tax monthly (along with Megacorp's contribution), but I made my deductions a little smaller so that I could contribute enough separately right at the beginning of the year to get the balance up to $1000 after my first paycheck so that it can be invested. Now I have to wait for Payflex to finish setting up the connection to my bank account.

Later today I'll call Vanguard to begin the process of rolling my Roth after-tax IRR monies to my own Roth IRA.

Sometimes the excitement for the beginning of the year and the transactions that can be made turn me into Steve Martin going crazy about the new phone books being out. :)
3dream3
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by 3dream3 »

mmmodem wrote: Wed Jan 01, 2020 2:50 pm
KlangFool wrote: Wed Jan 01, 2020 1:19 pm OP,

Not buying until I have earned income of 6K in 2020.

KlangFool
That makes sense. I made our contribution this morning so I’ll let it ride. Next year I’ll wait until we have the $12k or maybe $13k income.
I honestly never thought about this either and totally makes sense. I already funded both of ours late last night so may have to think about this next year. Thanks!
gopack13
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by gopack13 »

vitaflo wrote: Wed Jan 01, 2020 5:10 pm I usually wait until the end of the year to make sure I haven't gone over the Roth IRA income limit (which I almost always do). As such, I'm making my 2019 contribution today. :)
This is closer to how I've approached it the last few years, for a slightly different reason (one that I've rarely, if ever, seen discussed on here). The last few years my MAGI has been within the window of only being able to do a partial deduction. I used to contribute the max right away, then I had to do a recharacterization at tax time the following year. While easy enough to do, it's annoying and I decided I'd rather wait to see how my income shakes out before making the final decision.

Instead, I front-load my 401k to max it out within the first few months of the year. My rationale for this is, I can only do this while I have a job while my IRA can be done any time. I'm confident in my job security, but you never know what may happen. For the same reason, I don't max out my HSA until I'm certain I'll have had proper coverage for all 12 months (saw someone else allude to this). In regards to my 401k I receive the full match no matter when I max it out, so my goal is to get that out of the way as early as possible. After that, I rebuild my cash balance and if there's anything available between then and the end of the year I contribute to taxable. I did most of my Roth contribution and my full HSA for 2019 last week, the remaining amount will be done once I file my taxes (which I do as soon as I get my W2).

I've been doing it this way for 2-3 years now, and I'm happy with it. Except for the last month or two of the year, I typically have all available money invested so there's minimal fear if "missing out" on any potential time in the market.
SoCalT
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by SoCalT »

Not at 12:01 - was out with friends celebrating a new year. I did bang it out this morning on 1/2.

I've been carrying too much in cash beyond a normal 6 month emergency fund so moving all 6k into the Roth is a nice way to get that idle cash balance down.
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F150HD
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by F150HD »

Last year on Jan 1 I 'thought' the market was going to go down further (despite 2018 poor performance)...guessing many of us somewhere in our minds are waiting for that black swan like 2008. But, true to the philosophy here, I decided to invest it all on day 1. Glad I did.

Did this same this AM. Though....I did buy VTI this time, and swept any excess $$ into VTSAX. I'm not a big ETF guy (yet) as it feels like day-trading, but for buy and hold it won't matter.
Daedalus
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Daedalus »

Maxed out Roth with $6k worth of VTSAX after eating breakfast on January 1st 8-)
lakpr
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by lakpr »

3dream3 wrote: Thu Jan 02, 2020 11:07 am
mmmodem wrote: Wed Jan 01, 2020 2:50 pm
KlangFool wrote: Wed Jan 01, 2020 1:19 pm OP,

Not buying until I have earned income of 6K in 2020.

KlangFool
That makes sense. I made our contribution this morning so I’ll let it ride. Next year I’ll wait until we have the $12k or maybe $13k income.
I honestly never thought about this either and totally makes sense. I already funded both of ours late last night so may have to think about this next year. Thanks!
At my MegaCorp, generally we get paid for the work we did two weeks later. So, the pay check we receive on January 15th, for example, is really for the work done from December 16th through December 31st.

Thus, I don't see a reason to wait until "already earned $6k before contributing", since we KNOW our paycheck on January 15th will be more than $6k. I am in 24% bracket, so have to resort to Backdoor Roth.

I would like to believe that this (delay of up to one pay cycle) is the general case with most employers. Running payroll accurately does require an honest accounting of the number of hours put in, vacation hours, etc.

Just trying to say if you did work during last 2 weeks of December, you can use the estimate of pay from that period to start funding your direct or backdoor Roth IRA on January 1st or 2nd.
stocknoob4111
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by stocknoob4111 »

I was on vacation and got back yesterday night so did it first thing this morning... maxed out Roth (via backdoor), going to actually do the conversion tomorrow.
scubadiver
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by scubadiver »

Well done Bogleheads, pushing the markets to new highs in a rush to make your 2020 IRA contributions. :wink:
nolesrule
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by nolesrule »

My wife's paycheck stub for tomorrow posted, so I put in as much as the taxable wages would cover (rounded) into a TIRA. Will convert to Roth as soon as the funds settle. Will do the remainder in 2 weeks.

I'm in between jobs, and doing contract work, so payment is unpredictable. I start a new fulltime job in early February, so I'll probably be doing my contributions in February.
Last edited by nolesrule on Thu Jan 02, 2020 4:38 pm, edited 1 time in total.
lkar
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by lkar »

I did our contributions (2x$7k) yesterday and converted to Roth today. I put in a buy order on mutual funds that won't execute until tonight. I wish I had gone with ETFs this morning given today's gains!
stocknoob4111
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by stocknoob4111 »

I was unable to do the conversion, I contributed on 1/2 by buying a direct position in VTSAX and having the funds deducted from my savings. Settled on 1/3. Tried to do a conversion on 1/4 but Vanguard will not let me until the funds clear on 1/9 which is a real pain. I was under the impression that I can convert to Roth immediately after the transaction settles... apparently not.

I did have $6k available in my taxable Brokerage Settlement fund so wondering if I had used that to pay if it (not sure if that's possible as it's the Settlement fund on a different account) would've been faster rather than a debit from external savings.
lakpr
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by lakpr »

That is surprising. I am able to convert to Roth today. Loss of $47 from the $6000 I contributed on 1/2/2020. I have even done the contribution from a new bank account as well.

If you are unable to do it online, you can call Vanguard and have it done over the phone. I don't think you need to wait until 1/9/2020
csmath
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by csmath »

lakpr wrote: Sat Jan 04, 2020 12:10 pm That is surprising. I am able to convert to Roth today. Loss of $47 from the $6000 I contributed on 1/2/2020. I have even done the contribution from a new bank account as well.

If you are unable to do it online, you can call Vanguard and have it done over the phone. I don't think you need to wait until 1/9/2020
Anyone able to confirm this can be done earlier on the phone? I’m in the same boat with two TIRAs that need to be converted to Roth but have a red warning on Vanguard site about waiting until the 9th.
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F150HD
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by F150HD »

stocknoob4111 wrote: Sat Jan 04, 2020 12:05 pm I was unable to do the conversion, I contributed on 1/2 by buying a direct position in VTSAX and having the funds deducted from my savings. Settled on 1/3. Tried to do a conversion on 1/4 but Vanguard will not let me until the funds clear on 1/9 which is a real pain. I was under the impression that I can convert to Roth immediately after the transaction settles... apparently not.

I did have $6k available in my taxable Brokerage Settlement fund so wondering if I had used that to pay if it (not sure if that's possible as it's the Settlement fund on a different account) would've been faster rather than a debit from external savings.
This is exactly what I do due to the very problem you described; and yes you can then move it right in to your Roth.
corp_sharecropper
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by corp_sharecropper »

dwickenh wrote: Wed Jan 01, 2020 8:09 pm I'm going to do a 31K conversion this year, but will likely wait for a RBD to do it:)
What's an RBD?
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Broken Man 1999 »

corp_sharecropper wrote: Sat Jan 04, 2020 1:21 pm
dwickenh wrote: Wed Jan 01, 2020 8:09 pm I'm going to do a 31K conversion this year, but will likely wait for a RBD to do it:)
What's an RBD?
Really Bad Day

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Candor
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Candor »

Did mine on 1/1 but later in the day. Here's hoping it works out to front load this year like it did last. Not that it makes much difference in the scheme of things but at least it forces me to keep working for the 1st couple of paychecks this year. I'm not sure how I will motivate myself for the rest of the year. :D
AllMostThere
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by AllMostThere »

AllMostThere wrote: Wed Jan 01, 2020 7:27 pm Not 12:01 AM this morning. More like 7 PM this evening. Initiated $7K each into my & DW's tIRA's, which is step one towards our backdoor ROTH contributions for 2020. :beer
Also, opened myself a Fidelity HSA and initiated $1K HSA 2020 contribution catch-up for myself as I turn 55 this year. :beer :beer.
None of this would have been known to me had I not listened and learned from this awesome Boglehead forum. :beer :beer :beer
Step 2 of the backdoor process is now complete! Our 2020 tIRA contributions have now made their way to our ROTH's to finish the backdoor process. Gotta love this educational forum. :moneybag
Boatguy
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by Boatguy »

Did my $7k tIRA on 1/1 and set up the Roth conversion this morning. Will buy some ibonds at the end of January and get credit for holding them for the entire month while still earning interest from Synchrony! Nothing like double dipping.
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Re: Roth IRA - so who hit 'enter' at 12:01AM this morning?

Post by F150HD »

corp_sharecropper wrote: Sat Jan 04, 2020 1:21 pm
dwickenh wrote: Wed Jan 01, 2020 8:09 pm I'm going to do a 31K conversion this year, but will likely wait for a RBD to do it:)
What's an RBD?
That means waiting while the market rises 30%, then when it drops 10%, make the purchase. :wink:
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