Roth IRA from MMF
Here’s a summary of the main problem reported by the user and the solutions discussed:
- Main Problem: The user wants to know if they can buy funds in their Roth IRA directly using money from their separate brokerage account without having to transfer funds first.
- Solution 1: It is possible to transfer cash from the brokerage account to the Roth IRA as a contribution. The user can do this via the transfer page on Fidelity’s website.
- Solution 2: Once funds are in the Roth IRA, they can be used to purchase securities, as SPAXX serves as the core position for uninvested cash.
- Clarification Offered: Fidelity representatives encourage the user to clarify their intentions if they need further guidance on making purchases or transferring funds.
Here’s the full thread
Is there a way to buy in my ROTH and have my MMF brokerage fund (SPAXX) be the contributor? Right now it seems like I have to transfer money between accounts and then buy funds in the ROTH but I am wondering if there is a way to make it easier. Thanks
Happy Monday, @Omelette.
It sounds like you have a Roth IRA, so I’d like to first state that SPAXX is a money market mutual fund, often the core position for Fidelity IRAs, The core position is where uninvested cash sits until you use it to purchase securities or make withdrawals. Therefore, if you make a contribution to your Roth IRA, and SPAXX is your core position, funds will automatically be deposited there and used to fund additional security purchases in the account.
You can learn more about the mechanics of a core position below.
What is a core position? (PDF): https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/mutual-funds/what-is-a-core-position.pdf
If there is anything we can clarify or if additional questions pop up, please don’t hesitate to ask! We’re always happy to help. 🟢
I have a ROTH IRA and a separate brokerage. Am I easily able to contribute to the ROTH from the seperate brokerage?
Hi, @Omelette .
Yes, you can certainly transfer cash from your brokerage account into your Roth IRA as a contribution.
To do so, you will go to our transfer page and then choose the “From” account as your brokerage account and the “To” account as your Roth IRA.
Transfers (login required): https://digital.fidelity.com/ftgw/digital/transfer/
Let us know if you have other questions! 🟢
But I can’t buy fund in my ROTH and directly pay with it from my other brokerage. Seems like I have to transfer money first
Thanks for following up with us, @Omelette.
Can you clarify what you’re trying to accomplish? Are you attempting to purchase a fund in your Roth IRA but need to transfer funds from your Brokerage account first?
If so, the instructions we’ve provided are what you’ll follow to transfer funds from your Brokerage to your Roth IRA.
When you’re ready to make a purchase, you can do so on Fidelity.com by selecting “Accounts & Trade” and then clicking “Trade” to enter your order details.
That said, let us know more about what you’re looking to accomplish, and we’ll point you in the right direction! 🟢