IRAutomation comes with a Funding Strategy feature that is designed to help our clients avoid over depositing or over contributing to their IRAs each year. Funding Strategy has three options:
- Prioritizing Deposits: Prioritize Deposits will direct all Retirement deposits to your IRA(s) first to focus on reaching your annual deposit limit as early in the year as your deposits allow, and is a great option if you know you won't need the funds later in the year. Once your IRA limit(s) are met, all deposits will be directed to your Personal Account so your Retirement targets stay on track.
- Divide Deposits: If you can't commit to your limit so early this year, you can select Divide Deposits to specify the amounts you wish to deposit into each IRA and taxable account. Similar to Prioritize Deposits, we'll automatically pause your IRA deposits once you reach your annual limit(s), and direct them to your Personal Account for the rest of the year.
- Pause Deposits: Like Divide Deposits, Pause Deposits allows you to specify your amount per investment account, but doesn't direct IRA deposits to your Personal Account after your annual limit(s) are reached. Honestly, we don't recommend this because it could cause your Retirement targets to go off track, but we built it just to give you full flexibility.
Both the Prioritizing Deposits and Divide Deposits features will divert excess funds, from auto-deposits and one-time deposits, into your taxable account once your annual limit is reached.
All IRA deposits will automatically reset at the start of the next calendar year.