Today is a Good Day to fund the 2015 IRA

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Toons
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Today is a Good Day to fund the 2015 IRA

Post by Toons » Fri Jan 02, 2015 10:10 am

Just a friendly reminder,go ahead and fully fund that 2015 IRA if you have taken care of your 2014,why not?
Remember,,"Time Not Timing" :sharebeer
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Re: Today is a Good Day to fund the 2015 IRA

Post by achen9291 » Fri Jan 02, 2015 10:19 am

Thanks for the reminder! I went ahead and fully funded mine yesterday for today.

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Re: Today is a Good Day to fund the 2015 IRA

Post by Toons » Fri Jan 02, 2015 10:24 am

achen9291 wrote:Thanks for the reminder! I went ahead and fully funded mine yesterday for today.
Excellent! :sharebeer
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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Re: Today is a Good Day to fund the 2015 IRA

Post by flyingaway » Fri Jan 02, 2015 10:31 am

Should everyone buy on the same day to push up the price?

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Re: Today is a Good Day to fund the 2015 IRA

Post by livesoft » Fri Jan 02, 2015 10:46 am

The reason I have not taken care of my 2014 IRA is because I am unsure of my allowed maximum contribution and will not be sure for a few more weeks until I know my total income for 2014. I will not know my total income for 2014 until Vanguard gets its act together and tells me the value of the dividends I was paid on my international funds before foreign taxes were taken out. I do not want to have to remove any excess contributions like the last time.
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Re: Today is a Good Day to fund the 2015 IRA

Post by Toons » Fri Jan 02, 2015 11:22 am

flyingaway wrote:Should everyone buy on the same day to push up the price?
Does it matter? :happy
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Re: Today is a Good Day to fund the 2015 IRA

Post by Clever_Username » Fri Jan 02, 2015 11:41 am

Indeed. When I woke up yesterday, I put in the order at Vanguard to ensure I wouldn't forget. Now, more than 24 hours later, it's been on my mind quite a bit.

I guess I have another year before I can make another IRA contribution.
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Re: Today is a Good Day to fund the 2015 IRA

Post by Dario33 » Fri Jan 02, 2015 12:31 pm

I literally put in my order 10 minutes ago. 8-) It's been on my mind for the past month or so, but thanks for the reminder anyway.

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Re: Today is a Good Day to fund the 2015 IRA

Post by zaboomafoozarg » Fri Jan 02, 2015 12:52 pm

Image

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Re: Today is a Good Day to fund the 2015 IRA

Post by Grt2bOutdoors » Fri Jan 02, 2015 1:01 pm

Done.
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Re: Today is a Good Day to fund the 2015 IRA

Post by Toons » Fri Jan 02, 2015 1:07 pm

Grt2bOutdoors wrote:Done.
:sharebeer
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Re: Today is a Good Day to fund the 2015 IRA

Post by Toons » Fri Jan 02, 2015 1:08 pm

Clever_Username wrote:Indeed. When I woke up yesterday, I put in the order at Vanguard to ensure I wouldn't forget. Now, more than 24 hours later, it's been on my mind quite a bit.

I guess I have another year before I can make another IRA contribution.

:thumbsup
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Re: Today is a Good Day to fund the 2015 IRA

Post by Toons » Fri Jan 02, 2015 1:08 pm

zaboomafoozarg wrote:Image
:sharebeer
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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Re: Today is a Good Day to fund the 2015 IRA

Post by Goldrush » Fri Jan 02, 2015 1:15 pm

Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?

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Re: Today is a Good Day to fund the 2015 IRA

Post by Clever_Username » Fri Jan 02, 2015 1:41 pm

Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?
Seeing as how I funded my IRA for 2015 already, the Cardinals have a playoff game tomorrow, and my first day of work for the calendar year is on Monday, this is a very real possibility for me.

Fortunately, if it happens, I won't be the one who has to worry about it. It's a small consolation.
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Re: Today is a Good Day to fund the 2015 IRA

Post by Bacchus01 » Fri Jan 02, 2015 3:01 pm

My Jan 1 activity, after watching my Badgers beat Auburn, was to fund our 2015 IRAs, our 2015 529s and our 2015 HSA. ~$33K moved to new accts.

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Re: Today is a Good Day to fund the 2015 IRA

Post by Ron » Fri Jan 02, 2015 3:06 pm

Toons wrote:Just a friendly reminder,go ahead and fully fund that 2015 IRA if you have taken care of your 2014,why not?
I/wife can't (either 2014 or 2015); we're retired :twisted: ...

(Sorry, I could not resist).

- Ron

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Re: Today is a Good Day to fund the 2015 IRA

Post by dodecahedron » Fri Jan 02, 2015 3:13 pm

Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?
If you have time between the time you realize you are going to die and your death, you could call Vanguard and request that they remove the excess contribution and any earnings on it.

Or you could just relax, go with the flow, and let your executor take care of doing that afterwards. It would not be high on my priority of ways to spend my final hours!

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Re: Today is a Good Day to fund the 2015 IRA

Post by island » Fri Jan 02, 2015 3:24 pm

Thanks for the reminder. We need to do our IRA to backdoor Roth conversions.

So what funds did you kids purchase?

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Re: Today is a Good Day to fund the 2015 IRA

Post by PatrickA5 » Fri Jan 02, 2015 3:27 pm

Funded $6,500 to mine and my DW Roths this morning. Also, adjusted our overall asset allocation from 60/40 to 50/50, so I made a fairly decent sized trade moving money from Total US Stock to Stable Value. We're close to retiring, and a little more conservative allocation going forward might help sleep better.

All new 401K money will be going 100% into stocks, so (hopefully) I'll be doing some rebalancing at least quarterly.

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Re: Today is a Good Day to fund the 2015 IRA

Post by Bacchus01 » Fri Jan 02, 2015 3:34 pm

island wrote:Thanks for the reminder. We need to do our IRA to backdoor Roth conversions.

So what funds did you kids purchase?
Our IRAs go into Vanguard Extended Market
Our HSAa are in stable value funds, but will move to Vanguard S&P this year
Our 529s go into aggressive age-based funds for each child and my wife and I
I also bought some Vanguard Mid-Cap Value to get some more exposure to mid-cap in our taxable account

I TLHd our Vanguard ST Corp Bond fund in taxable on Dec 30th into money market that I need to move into Vanguard Intermediate Corp Bond as soon as some funds clear from my Ally transfer to meet the $50K min

Lots of activity right now. Need to redo my W4 as soon as I get back to the office as well.

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Re: Today is a Good Day to fund the 2015 IRA

Post by iceport » Fri Jan 02, 2015 3:48 pm

Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?
Well. Well, well. Well, well, well, well, if it isn't little Alex. Long time no viddy, droog. How goes?

(Love the avatar, Goldrush.)

Already placed the order yesterday, Toons! (Looks like there'll be a mess to clean up if I'm befallen by a bit of the ol' ultraviolence...)
"Discipline matters more than allocation.” ─William Bernstein

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Re: Today is a Good Day to fund the 2015 IRA

Post by Toons » Fri Jan 02, 2015 3:56 pm

petrico wrote:
Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?
Well. Well, well. Well, well, well, well, if it isn't little Alex. Long time no viddy, droog. How goes?

(Love the avatar, Goldrush.)

Already placed the order yesterday, Toons! (Looks like there'll be a mess to clean up if I'm befallen by a bit of the ol' ultraviolence...)

:thumbsup
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Re: Today is a Good Day to fund the 2015 IRA

Post by Toons » Fri Jan 02, 2015 3:56 pm

PatrickA5 wrote:Funded $6,500 to mine and my DW Roths this morning. Also, adjusted our overall asset allocation from 60/40 to 50/50, so I made a fairly decent sized trade moving money from Total US Stock to Stable Value. We're close to retiring, and a little more conservative allocation going forward might help sleep better.

All new 401K money will be going 100% into stocks, so (hopefully) I'll be doing some rebalancing at least quarterly.

:thumbsup
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Re: Today is a Good Day to fund the 2015 IRA

Post by Toons » Fri Jan 02, 2015 3:57 pm

Ron wrote:
Toons wrote:Just a friendly reminder,go ahead and fully fund that 2015 IRA if you have taken care of your 2014,why not?
I/wife can't (either 2014 or 2015); we're retired :twisted: ...

(Sorry, I could not resist).

- Ron
:sharebeer
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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Re: Today is a Good Day to fund the 2015 IRA

Post by SuperGrafx » Fri Jan 02, 2015 4:12 pm

I didn't fully fund my 2015 IRA today, but I did contribute a big chunk!

I maxed out 2014 over the course of last year.

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Re: Today is a Good Day to fund the 2015 IRA

Post by Workinghard » Fri Jan 02, 2015 4:20 pm

I tried to fund our Roths yesterday but I'm not sure if it went through because it was the first time I've used a mobile check. Our local bank started charging for transfers. I set up Ally a week ago, and it was verified, but when I went to do it that way it said I needed to get forms notarized. Then I tried calling Vanguard today because nothing is showing up as pending, but there was a recording from the CEO due to the volume of calls. Thanks for tying up the phone lines, Bogleheads! :annoyed

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Re: Today is a Good Day to fund the 2015 IRA

Post by Random Musings » Fri Jan 02, 2015 4:42 pm

DW and I always do on the first business day of the year.

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Re: Today is a Good Day to fund the 2015 IRA

Post by island » Fri Jan 02, 2015 4:47 pm

Bacchus01 wrote:
island wrote:Thanks for the reminder. We need to do our IRA to backdoor Roth conversions.

So what funds did you kids purchase?
Our IRAs go into Vanguard Extended Market
Our HSAa are in stable value funds, but will move to Vanguard S&P this year
Our 529s go into aggressive age-based funds for each child and my wife and I
I also bought some Vanguard Mid-Cap Value to get some more exposure to mid-cap in our taxable account

I TLHd our Vanguard ST Corp Bond fund in taxable on Dec 30th into money market that I need to move into Vanguard Intermediate Corp Bond as soon as some funds clear from my Ally transfer to meet the $50K min

Lots of activity right now. Need to redo my W4 as soon as I get back to the office as well.
Thanks for answering what funds you purchased!

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Re: Today is a Good Day to fund the 2015 IRA

Post by max12377 » Fri Jan 02, 2015 4:57 pm

Done! :sharebeer

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Re: Today is a Good Day to fund the 2015 IRA

Post by Clever_Username » Fri Jan 02, 2015 5:04 pm

island wrote:So what funds did you kids purchase?
My Roth is 100% total (domestic) stock market, so $5500 of that.

I also had some money ready for taxable investing that went through today, for $5000 of total international, but that's outside the Roth.
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Re: Today is a Good Day to fund the 2015 IRA

Post by notmyhand » Fri Jan 02, 2015 5:07 pm

Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?
Usually you get paid two weeks to a month after you do the actual work (get paid for December in January for example) so you might have a paycheck or two coming after you die that would help cover the contribution.

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Re: Today is a Good Day to fund the 2015 IRA

Post by Ignis » Fri Jan 02, 2015 9:20 pm

Fully funded mine first thing this morning. $5,500 of VTSAX.

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Re: Today is a Good Day to fund the 2015 IRA

Post by Groundhog » Fri Jan 02, 2015 10:02 pm

We funded ours today also. $6500 to total stock market and total international. I received my first paycheck of the year today also.

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Re: Today is a Good Day to fund the 2015 IRA

Post by JDDS » Fri Jan 02, 2015 10:34 pm

notmyhand wrote:
Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?
Usually you get paid two weeks to a month after you do the actual work (get paid for December in January for example) so you might have a paycheck or two coming after you die that would help cover the contribution.
This is what I count on.

I got my contribution in just before the closing bell, VMMXX. I'll figure out what funds it goes into sometime next week.

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Re: Today is a Good Day to fund the 2015 IRA

Post by englishgirl » Fri Jan 02, 2015 10:38 pm

Why not? Because we might not have the money lying around, that's why not.

Yes, I fully funded 2014, but my last contribution was 2 weeks ago. My first contribution for 2015 was today, as it happened to be a pay day, but I've got 24 more contributions to go. Still, $220 down... :beer
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Re: Today is a Good Day to fund the 2015 IRA

Post by Toons » Fri Jan 02, 2015 10:41 pm

englishgirl wrote:Why not? Because we might not have the money lying around, that's why not.

Yes, I fully funded 2014, but my last contribution was 2 weeks ago. My first contribution for 2015 was today, as it happened to be a pay day, but I've got 24 more contributions to go. Still, $220 down... :beer
Sounds like your off to a great start! :thumbsup
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Re: Today is a Good Day to fund the 2015 IRA

Post by grabiner » Fri Jan 02, 2015 10:53 pm

I did half of it today. I have a large taxable account at Vanguard, so all the December dividends accumulate in my money-market account, giving me enough to make my contribution.

The other half has to wait until my contribution posts. I do a backdoor Roth IRA, and when I checked today, my traditional IRA contribution was still pending. On Monday or Tuesday, I'll convert to the appropriate fund in the Roth IRA.
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Re: Today is a Good Day to fund the 2015 IRA

Post by SunnySeattle » Fri Jan 02, 2015 11:28 pm

Done with step 1. Thanks for stating your funds too!

VG money market until I can do backdoor Roth. Still in research mode to figure out which admiral fund to hold in Roth.

Debating between total US or total international. Only have enough for one admiral fund as this is just my and DH's second year with an IRA.

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Re: Today is a Good Day to fund the 2015 IRA

Post by jeep364 » Sat Jan 03, 2015 12:16 am

Is there a reason I should be funding my IRA 100% early in the year (I'm 60/40 VFIAX/VFIFX Target 2050)?

I have the cash to do it, but you are assuming more risk vs spreading it out into equal contributions across the year (I currently have bi monthly distributions to Vanguard from savings). Of course, if the market shoots up tomorrow and stays that way then you made the right call by putting it in today.

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Re: Today is a Good Day to fund the 2015 IRA

Post by fkampere » Sat Jan 03, 2015 7:25 am

I funded mine yesterday. I can't predict the future so no reason waiting for something that might not happen like stocks going down, plus I rather get it done and over with. :sharebeer

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Re: Today is a Good Day to fund the 2015 IRA

Post by acegolfer » Sat Jan 03, 2015 7:43 am

livesoft wrote:The reason I have not taken care of my 2014 IRA is because I am unsure of my allowed maximum contribution and will not be sure for a few more weeks until I know my total income for 2014. I will not know my total income for 2014 until Vanguard gets its act together and tells me the value of the dividends I was paid on my international funds before foreign taxes were taken out. I do not want to have to remove any excess contributions like the last time.
This is exactly why I fund my IRA after the year.

Suppose I funded my 2014 IRA in Jan, 2014 and and just found that I can't contribute to 2014 IRA. What will happen?

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Re: Today is a Good Day to fund the 2015 IRA

Post by FedGuy » Sat Jan 03, 2015 9:06 am

I usually fund my IRA in late April. This is partially a historical artifact of the fact that, when I was young and stupid and was investing in what seemed to be a declining market (circa 2000), I would fund the IRA in the first few months of the following year to take advantage of declining asset prices (yes, it was market-timing, but like I said I was young and stupid). I eventually decided to stop doing that and decided to fund the IRA earlier, but was worried that if I moved it to before the tax filing deadline I might get confused as to which year I was funding, so I got in the habit of making my contribution as early as possible within the timeframe within which that ambiguity wouldn't exist.
jeep364 wrote:(I currently have bi monthly distributions to Vanguard from savings).
Jeep, a lot of people do the "backdoor Roth IRA." You're ineligible to contribute directly to a Roth IRA if your income exceeds a certain threshold, but you're allowed to convert a traditional IRA into a Roth, so a lot of people fund a traditional IRA and then convert it into a Roth. The trick is that your taxes get complicated if the traditional IRA increases in value before you convert it, so it keeps things simple to fund the entire thing at once and then convert it right away.

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Re: Today is a Good Day to fund the 2015 IRA

Post by TIAX » Sat Jan 03, 2015 11:34 am

For those who inadvertently contributed to the wrong year (i.e., 2015, without maxing 2014), if you go to transaction history and click on the relevant transaction, there's an option to "Edit Contribution Year." I think this may be a new feature.

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Re: Today is a Good Day to fund the 2015 IRA

Post by TIAX » Sat Jan 03, 2015 11:42 am

acegolfer wrote:
livesoft wrote:The reason I have not taken care of my 2014 IRA is because I am unsure of my allowed maximum contribution and will not be sure for a few more weeks until I know my total income for 2014. I will not know my total income for 2014 until Vanguard gets its act together and tells me the value of the dividends I was paid on my international funds before foreign taxes were taken out. I do not want to have to remove any excess contributions like the last time.
This is exactly why I fund my IRA after the year.

Suppose I funded my 2014 IRA in Jan, 2014 and and just found that I can't contribute to 2014 IRA. What will happen?
This is only relevant if there's a chance you may be over the limit (modified AGI at or above 116k single, 183k MFJ for 2015). As several people have mentioned, if you think that's possible, just do the backdoor Roth.

livesoft, is there a reason you just don't backdoor Roth early?

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Re: Today is a Good Day to fund the 2015 IRA

Post by itstoomuch » Sat Jan 03, 2015 12:34 pm

Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?
I would think that it's no longer the deceased concern.
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Re: Today is a Good Day to fund the 2015 IRA

Post by avenger » Sat Jan 03, 2015 1:34 pm

Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?

Of Goldrush's 16 posts, this is the second post in the second thread with the same bizarre question. (See: viewtopic.php?f=1&t=153613)

What a curious preoccupation with an unlikely scenario with little to no consequence.
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Re: Today is a Good Day to fund the 2015 IRA

Post by TheEternalVortex » Sat Jan 03, 2015 1:41 pm

Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?
I got paid on Jan 2, so I'm fine ;).

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Re: Today is a Good Day to fund the 2015 IRA

Post by Goldrush » Sat Jan 03, 2015 2:18 pm

avenger wrote:
Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?

Of Goldrush's 16 posts, this is the second post in the second thread with the same bizarre question. (See: viewtopic.php?f=1&t=153613)

What a curious preoccupation with an unlikely scenario with little to no consequence.
Prior to asking this question (twice), I searched this forum for an answer to my question but I didn't find one. Not much response to the first time I asked the question, so I asked again. The responses answered my curiosity about the subject matter. I, myself, have made current year IRA contributions on January 2, but I always alerted my wife that she would need to withdraw the contribution or part of it in case of my early demise before I had sufficient qualified income to fund the IRA.

This year, we are each contributing $650 per month to our IRA's starting in March.

So, in summary, I guess it’s not that big of a deal to fully a fund your IRA before earning the income qualified to do so. The 6% penalty on $5500/6500 doesn't add up to much if the deadline for taking it out is missed.

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Re: Today is a Good Day to fund the 2015 IRA

Post by englishgirl » Sat Jan 03, 2015 2:48 pm

Goldrush wrote:
avenger wrote:
Goldrush wrote:Question: What happens if you fund your 2015 IRA on January 2, 2015 and you die on January 3, 2015 before you have any qualified income to fund a 2015 IRA?

Of Goldrush's 16 posts, this is the second post in the second thread with the same bizarre question. (See: viewtopic.php?f=1&t=153613)

What a curious preoccupation with an unlikely scenario with little to no consequence.
Prior to asking this question (twice), I searched this forum for an answer to my question but I didn't find one. Not much response to the first time I asked the question, so I asked again. The responses answered my curiosity about the subject matter. I, myself, have made current year IRA contributions on January 2, but I always alerted my wife that she would need to withdraw the contribution or part of it in case of my early demise before I had sufficient qualified income to fund the IRA.

This year, we are each contributing $650 per month to our IRA's starting in March.

So, in summary, I guess it’s not that big of a deal to fully a fund your IRA before earning the income qualified to do so. The 6% penalty on $5500/6500 doesn't add up to much if the deadline for taking it out is missed.
But if she has enough income (2x whatever your IRA max is) and you were around in part of 2015, then wouldn't she be able to say yours is a spousal IRA and leave the money there? I don't see a need to take it out in that scenario. If she doesn't have any income, then that would be different, as presumably she was contributing to a spousal IRA based on your income which would then no longer exist.
Sarah

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