Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
[[Background: Rolled my AMEX pre-tax w/employer contrib. to Fidleity Inv. Mutual Fund Ind.
Retirement Acct. in 1994. Graduated Motley Fool Workbook and Motley Fool Investment
Casette tape 11/98.]]

OK...I think I understand. In effect, you rolled over some sort of employer retirement plan into an IRA account in some way, shape or form...right?

[[ Now: I would like to "roll" this account to a Datek "Self Directed IRA" and
participate in the "Dow Foolish Four".]]

OK...again, it seems that you simply want to move your IRA from one broker to another.

[[ Q1: Any tricks to the "roll"?]]

Not really. Just tell Datek what you are trying to do. They'll help you with the paperwork. The Fidelity people will liquidate your mutual funds, and transfer the cash to Datek. It may take a while, but there are no tricks. Just make sure to use a "trustee to trustee" transfer directly from Fideltiy to Datek. Don't take a check from Fidelity and move it yourself to Datek.

[[ Q2: How to reinvest dividends
without tax consequences before normal withdraw?]]

Sorry, but I'm not following this question. Within an IRA account, the dividends will be tax deferred. You can either keep them in a cash account (until you make your next F4 move), or place them in some other investment until you need the funds. The Datek broker should be able to help you with your decision.

[[ Q3: How much time do I have after the "roll"
from the mutual to a cash account to reinvest?]]

Again, if you do a "trustee to trustee" transfer, there are no time limitations. If you take the check yourself, you have only 60 days to make the rollover (from the date of the receipt of the check from Fidelity). And, not only that, you'll then be restricted from changing brokers for at least one year. That is why I prefer a trustee to trustee transfer in your situation.

TMF Taxes
Roy

Want to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. There is still time available to do that tax planning (and tax saving) before the end of the year. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Pay special attention to the "archives" section. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement