Hi all! I just called Vanguard about taking a little tradional IRA that I have at a local bank and converting to a Roth with Vanguard. The reason being that after paying the taxes the account will be approx. $1000., which is the amount I need to open a Roth with Vanguard...
I was suprised to hear that there would be (2) $10.00 annual fees applied to the account. $10.00 for custodial, and $10.00 for an Index fund. The custodial gets waved at $5K and the Index fund fee at $10K.
My thought is....is it worth it to make the conversion to the Roth if I only have $1K to begin with and will be contributing $100/mnth after that? Will the $20. a year end up costing me anything I might earn on such a small amount of money?
Is it still worth opening the account or does it make more sense to wait until I am closer to the $5K to open it?