Skip to content

title: Avoid the A-Share Upfront Sales Charge in IRA Contributions description: [AFW S.2.22] Investment Principle #22 published: true date: 2026-06-30T08:10:27.383Z tags: editor: markdown dateCreated: 2021-08-31T05:38:17.795Z

Avoid the A-Share Upfront Sales Charge to Maximize IRA Contributions

Watch Avoid the A-Share Upfront Sales Charge in IRA Contributions VIDEO

Watch AF MKOM 1650 - 1-Page Financial Plan VIDEO

Contributions to an A-share Roth/Traditional IRA pay the 5.75% load (or lower) after they go into the account and thus reduce the actual contribution by about $345 annually. The annual maintenance fee reduces the actual contributions by another \(10, for a total of **\)355** that is not compounding.

Alternatively, you can make the full contribution to the Roth from a NQ account (where you've already paid the A-hare sale load) and get the full $6,000 in your Roth. You can even have the annual $10 maintenance fee paid from the NQ account!


Steps

  1. Open up a NQ account, A-share and fund it for more than the current maximumim contribution limit of the current year (ie, at least $7,000).

  2. At the same time open an IRA with zero investment.

  3. Once both accounts are established, sell/buy $7,000 from the NQ to the Roth.

  4. Finally, instruct AMF to pay the $10 custodial fee from the NQ.