sell fund in taxable account to fund ira before tax deadline

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
User avatar
Pocket Cruiser
Posts: 151
Joined: Mon Jul 08, 2013 5:48 pm
Location: East Texas

sell fund in taxable account to fund ira before tax deadline

Post by Pocket Cruiser » Sat Apr 14, 2018 1:42 pm

I would call vanguard about this, but they're closed for the weekend. I just put in an order to sell $5500 of VTSAX using FIFO, and then send the proceeds to my roth ira for a 2017 contribution. It allowed me to do this on the website, but will it really settle and be in the roth before Tues, 4/17?

Thanks!

User avatar
FiveK
Posts: 4931
Joined: Sun Mar 16, 2014 2:43 pm

Re: sell fund in taxable account to fund ira before tax deadline

Post by FiveK » Sun Apr 15, 2018 12:01 am

When you placed the order, did the system ask you if this is a 2017 or 2018 contribution? Did you specify 2017?

If the answer to both questions is yes, you should be ok. Otherwise, congratulations on getting your 2018 contribution done!

RickBoglehead
Posts: 332
Joined: Wed Feb 14, 2018 9:10 am

Re: sell fund in taxable account to fund ira before tax deadline

Post by RickBoglehead » Sun Apr 15, 2018 11:28 am

Your sale will take place on Monday, and the funds will be available for investment on Tuesday, but settlement date for the sale and purchase is a day later. Since you purchased on 4/17, which is still ok for the 2017 tax year, you will be fine.

Even if for some reason you screwed up and made the contribution on 4/17/18 but it got coded as a 2018 contribution, since the date is fine, you simply contact Vanguard and they recharacterize the contribution as 2017. If you had made it on 4/18 you'd be SOL.

User avatar
Pocket Cruiser
Posts: 151
Joined: Mon Jul 08, 2013 5:48 pm
Location: East Texas

Re: sell fund in taxable account to fund ira before tax deadline

Post by Pocket Cruiser » Mon Apr 16, 2018 10:32 am

Ok thanks!

I selected 2017 as the contribution year. Actually, I sold $11,000 of the fund in the taxable account, and went ahead and selected 2018, as well, at the same time.

Post Reply