[Nik]

For those who max IRAs the first day of the year, logistically how are you setting this up? Where is that max amount staged before Jan 1?

For example, I have my emergency fund in one account, bills for a month in another account, and then everything else is invested in an after-tax brokerage.

To have a spare 14k Jan 1 (self+spouse max), you’d have to have it sitting somewhere before then, no?

For me, I happen to get a bonus every year Q1, which is what I use to fund the IRAs. I feel it’s easier to keep my existing “system” in place of just investing all other amounts that don’t already have another purpose.

But I’m interested to hear what others do!

[Tara]

I’m single so it’s just me, and I’m able to invest $8K per month at this point. So yesterday I put $7K into my Roth IRA and $1K into brokerage.

I get paid once per month near the end of the month and I operate one month ahead.

So, I got paid December 24th, and maxed out the IRA on January 1st.

[Lauren]

I set it to auto invest monthly to fund the full amount by the end of the year

[Michael]

Depends on the year. On years my brokerage has done well, I harvest some gains in early Dec to fund my spouse and my Roth IRA on Jan 1.

On years it hasn’t done well, I fund it out of my EF and replenish the EF with funds from my bonus end of 1Q or with wages throughout the year.

There’d be nothing at all wrong with funding it from the 1Q bonus or simply DCAing from wages throughout the year.

The only real “wrong” approach would be to skip funding it at all…

[Ashley]

I use a bucket in my HYSA to collect the next year’s contribution. Sometime between xmas and NY, I move the contents of that bucket to the checking account that’s connected to the brokerage holding my IRA.

[Jenna]

I have a set amount dedicated to IRA funding each paycheck (currently $600). Beginning Jan 1 I have this amount sent to my IRA each check, after I hit the contribution limit then it goes into a HYSA to wait for the next year.

Each Jan 1 this balance is contributed to my IRA and the $600 is contributed each check until the limit.

Eventually the HYSA will have enough on Jan 1 to fully fund my IRA for the year.

[Hardy]

I used my dividends that hit my taxable brokerage account in December.

[Author]

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