Moved Roth IRA from TD to Vanguard - Max Contribution Start Over

Investing
#1

Hello All, I recently moved my RothIRA from TD Ameritrade to Vanguard because I like the automated investment feature with Vanguard, and TD Ameritrade doesn’t really have it, but they do but I just don’t like it. Anyway, I moved to Vanguard doing a transfer. All my assets transferred over, and in my Vanguard account for contributions for the year, it is not counting my TD Ameritrade contributions and says I can contribute another $6000.00. This is actually exciting to me because I would love to be able to max out the Roth again but I just wanted to check with the tribe.

Is there any reason why I shouldn’t take advantage of this loophole and max out again?

Thanks ahead to you all. Truly appreciate this community.

#2

Hi Salim,
Let’s say you actively have 2 Roth IRA accounts from 2 brokerage firms - they won’t know that you have 2 and will both say that you can contribute $6,000. However, the max combined contribution limit for yourself will still be $6,000. This is NOT a loophole… you will be subject to a 6% penalty every year until the extra money is taken out. :scream:

#3

Hi Vivi, thanks for your response.

I apologize ahead for my slow comprehension. So in this case I just have one account, as it was moved from TD to Vanguard. But what you are saying is that regardless the $6000 max will still be applied per tax year?

#4

Yes, that is correct :slight_smile:

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#5

@vivitron thank you!

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