Quick question to make sure I’ve got this right. We’re in an income range where we cannot use Roth and where putting money into an IRA does not offer any tax deferral benefits. We have 401k for the vast majority of our retirement, but we do have a little extra that we’ve been saving each year to try and shorten our careers. As such, I set up a Vanguard taxable account several years ago to manage investments from the extra bit we have each year. I’m generally a buy and hold investor, but I’ve realized there may come a point with the taxable account that we want to re-allocate, say with bonds as we approach retirement. Doing so will trigger a taxable event, even if it is LTCG.
Am I correct in that I could still set up an IRA with Vanguard and deposit to it (up to the annual max) from the extra we are otherwise sending to the taxable each year and use the IRA for tax-free re-allocation moves within the IRA?