Does all of the money you put into a Roth IRA have to be invested before the tax deadline of the year you deposit it? For example, if you put $2500 into your Roth IRA, but don’t buy any shares of FXAIX before April 15th, does that $2500 never grow?
Hi @mm60 - like you said, contributions to an IRA (Roth or Traditional) need to be made prior to the tax deadline for that year (April 2022 for a 2021 contribution). Once the contribution is made, you are free to invest the money as you see fit. If you leave it in cash and don’t invest it, then it won’t grow. Once it is invested in, using your example of FXAIX, then you still start getting market returns in your account.
I hope this helps!