Maximizing Investments: Utilizing ESPP for Roth IRA Contributions

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    Nicole

      I am sure others have thought of this, but putting it out there for others. I can only have one direct deposit from my paycheck but I like to have my investments be automated.

      My company has an ESPP program so I have updated that withholding to include my Roth IRA amount. Now, I earn money when executing the ESPP and can sell for money to my Roth. (Yes, I know there will be capital gains, but I plan to use long term for this method.)

      #91551 Reply
      Elizabeth

        You can also automate your investments to come from a checking or savings account. That is what I do.

        #91552 Reply
        Denise

          I can have as many direct deposits as I want (well up to 5 probably). What’s wrong with your payroll?

          #91553 Reply
          Holland

            This is what I do. I fund my Roth from ESPP proceeds, but I hold the espp stocks for at least 1 year to avoid short term gains.

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