smallLife wrote:I've noticed that two posters on this thread do their Roth contributions all at once - any particular reason why?
I can't make the Roth contribution for Year 20XX before January 1, 20XX per tax law. January 1 is a holiday, so I put it in on January 2. (Okay, one year I spaced it off and didn't get it in until January 16.) This gets the funds into the account as soon as I am allowed to put them there.
People who don't know whether their income will allow them to make a Roth Contribution might prefer to wait until their income for the year is known; that would have them making a contribution for year 2012 in early 2013, when they know how much they're allowed to contribute. My numbers won't be close enough to have to worry about that.
The only reason I see to split the contribution up is if you don't have it all at the start of the year and you want to put it in as soon as possible. Dollar cost averaging would be a bogus reason to split it up; if I wanted to dollar cost average into a mutual fund, I could still deposit the cash on January 2 and make monthly purchases of a mutual fund throughout the year.