I would invest it all in a total stock ETF, not a mutual fund such as VTSAX. In other words, use VTI instead. However, that is because I just like ETFs better. An ETF is also easily portable, so it can be transferred to other accounts, or other people easily.What would you do? Any help would be appreciated!
I would also try to keep as much of it as possible inside a Roth or HSA account. This will preserve its tax-free growth. So if you have any unfunded ability to put additional money into Roth IRAs, or after-tax contributions to a 401K, or have additional room to contribute to an HSA I would make that a priority.
For example, if you are contributing the max to your employer 401K but aren't contributing to a Roth IRA, or not doing back-door Roth contributions, I would do that. Roth limits for 2026 are $7,500. You could take $7,500 from the inherited Roth, then turn around and deposit it into your own Roth IRA. The idea would be to "fill-up" all available Roth space while you can.
If your 401k allows after-tax (Roth) contributions and you aren't maxing out your 401k contributions already, you could put some of the inherited Roth into your 401k account (find out how your 401k would mix those funds as many plans comingle the funds which isn't necessarily bad but not ideal). Another option, if you are currently maxing out your 401k contributions, is find out if your 401k plan allows mega backdoor Roth conversions. That would be another way of moving the inherited Roth funds into your personal Roth account.
Statistics: Posted by WeakOldGuy — Thu Feb 05, 2026 1:45 pm — Replies 3 — Views 52