Bonus loophole: if the market crashes during the year, you can request a return of excess contributions from the custodian for the entire amount (which will have been adjusted downward due to negative associated income), and make a new full contribution to a different IRA account.
For example, let's say you contribute $7,000 to your Fidelity IRA in January and invest your whole account in a total market fund. In July, the market crashes 50%. You can request a return of excess contributions for the entire amount from Fidelity. They will give you $3,500 back. You then can make a new $7,000 contribution to an IRA at Vanguard. You effectively get to rebalance into your IRA.
For example, let's say you contribute $7,000 to your Fidelity IRA in January and invest your whole account in a total market fund. In July, the market crashes 50%. You can request a return of excess contributions for the entire amount from Fidelity. They will give you $3,500 back. You then can make a new $7,000 contribution to an IRA at Vanguard. You effectively get to rebalance into your IRA.
Statistics: Posted by toddthebod — Wed Feb 12, 2025 11:59 pm — Replies 1 — Views 84