Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: piz Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: This doesn't make sense Date: 11/19/1998 2:08 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I wrote:
Anyone (especially if you're a Brown & Co. customer and you've converted, in whole or in part, a traditional IRA to a Roth) please comment:

I'm going to convert part of my IRA to a Roth. Brown charges a $25 fee to do this. I called and asked if I can pay the fee separately, without it counting as an IRA contribution. They said I couldn't, that the fee would have to come out of the existing IRA. But they also told that if I had a non-IRA account (I don't) they'd take the fee out of that instead. In other words, I can't pay the fee by check - it must be taken out of one or another account.

This doesn't make sense to me. If they're willing to take the fee out of a non-IRA account and not count it as an IRA contribution, why aren't they willing to accept a check in the same manner? I asked this, but the phone drone just reiterated that I couldn't pay the fee by check. I know other brokerages who charge a fee for Roth conversions accept payment that isn't treated as a contribution - why won't Brown? Seems to me that for tax purposes this fee should be treated the same way account maintenance fees are at brokerages who charge them - outside the IRA contribution limit.


Now it makes sense. I called Brown again and made the point that there's no difference as far as the IRS is concerned if the fee comes from a taxable account I have at Brown or from a check designated that it's not a contribution but just to cover the conversion fee. The phone drone put me on hold for a while (I assume to consult with the High Muckety-Mucks) and when he came back he said that would be OK. So now I can pay the fee by check and not have it count as a contribution.

Another blow struck for common sense!

Piz
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Prev | Next | Next Thread

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.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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