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I want to max out my IRA and I am investing in a mutual fund with 5% front-load fee.
Does that mean that I can contribute $5,500 max for IRA but have real IRA balance $5,500 less $275 = $5,225 as a result?
Or, can contribute $5,789 so my after fee balance becomes $5,500?
Our financial adviser said that first case is how it works, but he was not able to point me to any IRS documentation confirming it.