Do Transaction Fees Count Towards Roth IRA Contribution Limit?

External question — Personal Finance Stack Exchange Author: Jeffrey Enriquez Original post: https://money.stackexchange.com/questions/159384 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I'm using Interactive Brokers. I noticed that IBKR charges a transaction fee for the purchase of some funds. Does that transaction fee count toward the Roth IRA contribution limit?

External answer — Personal Finance Stack Exchange Author: D Stanley Original post: https://money.stackexchange.com/a/159385 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. No - the money you put in the IRA counts as contributions. Fees charged within the IRA, as well as gains and dividends, do not count. For example, If you put the maximum amount ($7,000 for 2024) into a Roth IRA, and your trades cost $10 in transaction fees, you will end up with $6,990 in investments after fees.