My financial fuck up

[Satan'sFortress]

I just realized that instead of depositing money into my IRA in January, I deposited it into my son's 529 college account.  I am so sick about it that I can hardly stand myself.  So, not only is the money NOT in my IRA, but it is in the 529 account, where we didn't want it.  The 529 was fine in the long term, but risky in the short term--and we need it now.  When I think how hard I worked at a job I don't like in order to earn that money---and a chunk of it is already gone in this volatile market.  It is one of the worst things I've ever done.  No money in the IRA, and losing the money that is in his college fund.  I am an ass.

[nausicaa]

36 minutes ago, Satan'sFortress said:

I just realized that instead of depositing money into my IRA in January, I deposited it into my son's 529 college account.  I am so sick about it that I can hardly stand myself.  So, not only is the money NOT in my IRA, but it is in the 529 account, where we didn't want it.  The 529 was fine in the long term, but risky in the short term--and we need it now.  When I think how hard I worked at a job I don't like in order to earn that money---and a chunk of it is already gone in this volatile market.  It is one of the worst things I've ever done.  No money in the IRA, and losing the money that is in his college fund.  I am an ass.

To (hopefully) make you feel better: If I'm understanding what you're saying, it's not gone, just not very liquid. If you hold onto the shares for longer than ten years, it is very likely that you will make money off of the share purchase. 

Also, can you now reduce your deposits into the 529 plan and put that into the IRA until it equals the amount you originally meant to put into the IRA?

[keen23]

I would talk to whomever manages your investments and see if they have a strategy for making up what's in your IRA and holding off on your 529 for now.

If you're talking large amounts of money, like you've hit excessive 529 contributions, there may be extra forms to file at tax time.

[Satan'sFortress]

Thanks for the support.

1 hour ago, keen23 said:

I would talk to whomever manages your investments and see if they have a strategy for making up what's in your IRA and holding off on your 529 for now.

If you're talking large amounts of money, like you've hit excessive 529 contributions, there may be extra forms to file at tax time.

I just discovered my error two days ago and am literally sick about it.  I am trying to work up the courage to call (it is through Fidelity) but I honestly just feel so stupid--I mean, I don't really know what they can do at this point--it was all on me. 

 

2 hours ago, nausicaa said:

To (hopefully) make you feel better: If I'm understanding what you're saying, it's not gone, just not very liquid. If you hold onto the shares for longer than ten years, it is very likely that you will make money off of the share purchase. 

Also, can you now reduce your deposits into the 529 plan and put that into the IRA until it equals the amount you originally meant to put into the IRA?

My son is almost halfway through college, so we weren't even making contributions any longer--just withdrawals to pay for expenses.  The 529 was almost gone & now is "refilled".  I actually can use that money immediately, but only for education expenses.  My reference to it being gone is that it lost value just since January bc. of the market.  If I could leave it in there for a longer time, it may build back up, but that wasn't the plan. 

[nausicaa]

36 minutes ago, Satan'sFortress said:

My son is almost halfway through college, so we weren't even making contributions any longer--just withdrawals to pay for expenses.  The 529 was almost gone & now is "refilled".  I actually can use that money immediately, but only for education expenses.  My reference to it being gone is that it lost value just since January bc. of the market.  If I could leave it in there for a longer time, it may build back up, but that wasn't the plan. 

Ah, got it. I'm sorry  For some reason I assumed your son was a small child still. 

I guess the best thing to do now would be to try and leave it in if you can until the market is high again and then pull out. The volatility nowadays may actually help you--there very well could be day/week soon when the market has a record high and you can get a short order to pull it out. 

And I wouldn't be embarrassed to call Fidelity and talk to them about it. It can't hurt and they certainly won't think you're dumb. People do stuff like this all the time, especially with how easy it is to click the wrong button online. I once bounced my checking account because instead of clicking the button to withdraw from my stocks to send to my checking, I did the reverse. 

[Season of life...]

Oh, that's an awful feeling--I'm so sorry! 

My husband has a 529, and has decided not to use it for school any longer, so he's letting it grow. It's doing well, and even with a penalty upon withdrawal he thinks it's worth it to let it ride a bit. If you needed the money now that's probably not ideal, but if you can wait, you may be pleasantly surprised in the future.

Our accounts are through Fidelity, and they have always been very helpful in answering questions. I agree with @nausicaa about giving them a call-- Fidelity patiently answered my questions while making me feel comfortable. I'm pretty much saying the same things as others, but wanted to reassure you about calling. I think you'll feel better once you speak with someone there.

 

[Botkinetti]

Not American so I definitely don’t understand the financial implications but I do want to echo the suggestion to call the company. I worked in a bank for 35 years and it was part of our job to answer questions and help customers. If we couldn’t answer we knew who to refer the customer to. They will want to help you and may have solutions that you might not have thought of. Please call soon.