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DH and I are in the phase out portion of Roth contributions, i.e. MAGI will be over $150K but under $160K for 2004.

Am unsure whether we will go over $160K for 2005, as DH is actively interviewing for other jobs. We will definitely at least be in the phase out portion in 2005. Depending on which job he gets, we could go over $160K and lose ability to contribute.

Is there any plus to going ahead and contributing for 2004, assuming we have only $1K each for 2004 (actively paying down debt that will be gone by Jan 2006) since the possibility is there that we won't be able to contribute again in the foreseeable future?

If we get stuck with just $1K in each account for the next xx years, won't the fees eat us alive?

I was thinking of going directly with Vanguard rather than Scottrade since Scottrade recently added the new fees. But Vanguard charges for accounts below $10K, don't they?


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Yes, Vanguard charges a quarterly fee for accounts below $10K.
In this situation I put my IRA contribution in a non-deductible IRA. I was able to put in the full amount. Actually since that one year, I haven't been eligible to contribute to a Roth. Someday when I retire I'll convert traditional IRA funds to a Roth. Since a chunk of the tax is already paid, the hit then won't be so hard.
Agreed, the fees on small accounts make the tax deferral just not worthwhile. The Roth is a no-brainer if you are eligible, but if you are only eligible for a small part, don't already have a Roth, then it loses its luster.
Best wishes, Chris
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Visit Scottrade where there be no minimum account fees. You can have a $1000 fund investment and not be penalized.

Who notes that there are still over 900 funds that carry no transaction fees for a completely cost-free investment...
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