How to Invest My Last Few Cents in a Roth IRA
Here’s a summary of the main problem and solutions discussed:
- Main Problem: The user is struggling to invest the last few cents in their Roth IRA, as dollar-based buy orders are not executing as expected, leading to frustration.
- Solution Offered: FidelityHeather explains that dollar-based orders are converted to shares and rounded down to the nearest .001 shares, which can result in receiving less than the intended dollar amount when buying or selling.
- Additional Information: A link to a resource on fractional shares is provided, which offers further clarification on how to properly execute trades involving fractional shares.
Here’s the full thread
I have a Roth IRA and am trying to get the last few pennies I have in the account invested (they are in money market right now). I tried selling like $5 of my main holding and buying back $5.03 of the same asset, but it only purchased $5 again. How do i invest that last 3 cents? Killing my OCD.
@User Not Found
Hi, @imjosh. We appreciate you dropping by. I’m happy to help clarify what’s happening here.
The value of a trade may be impacted when entering a dollar-based buy or sell order. Since dollar-based orders are converted to shares and are rounded down to the nearest .001 shares, it is possible that the value of the number of shares you receive might be higher or lower than the dollar amount you requested. Orders to buy or sell may be entered using either a fractional share quantity (e.g., 2.525 shares) or a dollar value (e.g., $250.00). Dollar value orders will be converted into share quantities for execution, again, to three decimal places. In all cases, when converting dollar-value orders into share quantities, the share quantities will be rounded down.
Feel free to check out the link below when you get a chance! It breaks this down in more detail.
Stocks by the Slice: https://www.fidelity.com/trading/fractional-shares
If we can help with anything else, please let us know!🟢