No. of Recommendations: 0
Greetings, CFrank, and welcome to Fooldom.

<<I'm considering a rollover from an ESOP into an Ira(non-deductible) offered by one of the online discount brokers. I already have a non-ded Ira invested in mutual funds. I also want to rollover this acct into the new online acct. I want to be able to self-direct this new acct. One reason for doing this is that the dividends come directly to me & are taxed & I would the dividends reinvested. Does this sound like a Fool thing to do & are there any hidden dangers?>>

I see no reason why this approach isn't reasonable assuming you are eligible to transfer your vested ESOP shares. Eligibility normally occurs on termination of employment or retirement, but some shares could be transferred at age 55 regardless of your employment status. Also, you should be aware that the dividends probably won't be reinvested in the traditional sense. Instead, they would accumulate in the broker's money market sweep account as part of the IRA until you get around to purchasing new shares with the available cash.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.