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Regarding Seattle Pioneer's reply, "My bias would be to dollar cost average money for stock purchases, rather than dumping your annual amount all at once." I don't really have that option if I save throughout the year to make the deposit at the very beginning of the tax year. I cannot save the money each month and put it into my IRA, unless I start putting it into the IRA after 1 January. I have, the last four or five years, saved the money for the year in a taxable account for transfer into the IRA on 1 Jan.

I put it in a very low risk MMF account because I get very nervous when I see the amount lose value. I don't want 1 January to roll around such that I have less in the account than I've put into it, less due to the market falling a bit. I don't need to be a great deal more than I have saved, but I absolutely don't want it to be less.

Dollar cost averaging in a MMF seems illogical as it really doesn't go up or down in price. Shares are each a dollar and remain a dollar.

I guess the risk I'm taking by paying the car note rather than shifting the money into our normal IRA mutual funds is that those funds might go up in price between now and when I can deposit my max IRA contribution.

Thanks for the replies, SP and MadCap,
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