tjcrom
New Member
Cash: $ 1.40
Posts: 6
Joined: 18 Aug 2007
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| IRA HELP |
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about 2 years ago, got involved with a company called first command and I got an IRA from them Known as the Destiny I plan. Well since then the plan has been desolved and It is now the Fidelity Diversified StocK (FTDOX). This is a roth IRA and it is front-loaded. I have had it now for about 2 years and don't know what to do with it. do I keep investing or go with another Roth IRA? and if i don go with another IRA how do I decide which one to go with?
I need some help......
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Sat Aug 18, 2007 1:15 am |
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efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
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Who is the trustee (broker, etc.) that holds your fund or sold it to you? If you still want to hold onto that and/or get into other funds, you could possibly transfer it "in kind" (without cashing it out) to a broker like Fidelity.com. Direct transfer can be arranged by the broker you would transfer the account to. But you should make sure you know any fee for closing the old account.
Whatever you do, don't have the old firm send you a check, because if it is in your name there is manditory withholding, and if you do not add that missing withholding back in while rolling it over within 60 days, the amount of withholding you did not make up may get hit with tax and 10% penalty. But you can get around that (no withholding) by doing a direct trustee to trustee transfer.
If you transfer it to someone else who charges a fee to trade Fidelity funds (Vanguard?), then you need to compare that with what your current trustee would charge to get out of that fund to see if it is cost effective to cash out the fund during the transfer process.
I guess I favor Fidelity (for my IRA and Roth IRA) because they have a lower stock trade fee than Vanguard, especially once you hit $50k in assets. Fidelity has over 1000 funds (including many other than their own) with no transaction fee, although, some have minimum holding periods of up to 6 months to avoid a penalty. Having so many choices can easily eat up a weekend trying to figure out what to get into.
Basically if you want to transfer it, set up an account up with the destination trustee (broker) and have them transfer it.
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Sat Aug 18, 2007 7:48 am |
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tjcrom
New Member
Cash: $ 1.40
Posts: 6
Joined: 18 Aug 2007
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thanks for the advice. i think that I am going to go with the in kind transfer into one of fidelity freedom funds. i did alot of research this weekend and I have decided to go with them
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Sun Aug 19, 2007 3:51 pm |
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