I have a small Vanguard traditional IRA that I maintain but don't contribute to. Because I want to continue to get paper statements, there is an account fee that I haven't paid for two years. Eventually I assume Vanguard will notice and ask for their money. I know I can pay it off by contributing some money into the settlement fund, however, that would count against my total IRA contributions for the year and reduce how much I can contribute to my Roth IRA (which I max out). Is there any way I can pay the account fees without that counting as an IRA contribution?

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    Are you sure you haven't paid it? Usually that would be deducted from your holdings.
    – littleadv
    Commented Nov 6, 2023 at 5:49
  • Last year, they instituted a $20 fee, and there was a -$20 balance in my settlement fund. This year, they increased the fee to $25 and now there is a -$45 balance in my settlement fund. In my Roth IRA, when I contributed $1,625, only $1,600 was actually added to the IRA. So it appears to me that Vanguard does not deduct it from my holdings but rather deducts it from whatever I contribute. If they just let me pile up fees forever and don't care, that would be fine, but I assume at some point they will want them paid.
    – Jack
    Commented Nov 7, 2023 at 13:41
  • They did deduct from your holdings, that's why you have negative balance. It will be covered by your dividends or proceeds when you rebalance or withdraw, or indeed contributions. At some point they might actively cash your investment
    – littleadv
    Commented Nov 7, 2023 at 17:08
  • Can you explain what you mean by that? I don't do anything with that IRA, I don't plan to contribute to it unless I change jobs and need to rollover my 457(b) (very unlikely), and it will be 30+ years before I withdraw from it. The negative balance has been there for two years, so they obviously aren't taking it out of my investment earnings. Are you just saying that negative balance will sit there for 30 years and keep growing? What do you mean by rebalancing it?
    – Jack
    Commented Nov 7, 2023 at 17:21
  • Yes. Rebalancing means reallocating funds invested.
    – littleadv
    Commented Nov 7, 2023 at 18:20


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