How do I add to Roth IRA?

[Guest tyke]

I have a Roth IRA with Vanguard and have two funds in it. If I want to add another fund to it, do I have to meet the $3000 initial investment fee, the $1000 IRA fee, or would the new fund be considered an additional investment into my IRA (minimum is $100) and I can invest, say, $500 in it? If I had to meet the $3000, that wouldn't make sense because then I'd be over my $2000 contribution limit for the year. I'm still learning so thanks again for all your help.

[John G]

Your question is best answered by calling Vanguard and asking them about their minimum requirements for additional mutual funds. Ussually you can add anything from $100 (if a fund has a minimum additional contribution) to $2000 ($4000 if simulataneously doing last year and this one) to an existing mutual fund. Then most fund families will allow you to transfer some amount from the existing fund to a new one.

Ask Vanguard. (you are dealing with custodian rules not IRS regulations)

Note, you may start incurring additional annual fees as your start new funds. Some fund families charge one overall fee, while others charge a fee for each mutual fund.