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Roth IRA & Taxes

Rolled over an old Roth; accelerated my year 1 base

dana.k 9h ago 1.2k views

Wanted to share a move that meaningfully sped up my starting base. I had an old Roth from a previous job's provider sitting in a target-date fund doing very little. I did a direct trustee-to-trustee transfer into the brokerage I run the system in.

Because it was already Roth money, there was no tax event and no contribution-limit issue; a transfer between Roth accounts isn't a new contribution. That let me start the system with a much larger base than the annual contribution cap would have allowed.

Not advice, obviously; check your own situation and talk to a tax professional. But if you have old Roth dollars sitting idle, it's worth understanding the difference between a transfer and a contribution.


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marcus_t· 8h ago

This is the single most underrated accelerant for people who've worked a few jobs. Idle Roth money is still Roth money.

first_steps· 6h ago

Didn't realize a Roth-to-Roth transfer didn't count against the contribution limit. That changes my plan. Thank you.

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