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Author: jasonbarker Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: IRA Question Date: 7/19/2000 4:17 AM
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Hey there, Fools...

I'm a fairly young guy, but when my employer offered an IRA with a 1% salary match, I jumped at the opportunity. I've been contributing $50 a month for about a year now.

(I'll get to the point, I swear). ;-)

So, I'm no longer with said employer. The money is still sitting there in (unfortunately) two Fidelity Funds (the choices weren't great).

My question is -- can I take that money and put it elsewhere, manage it myself? As I have other stock invesments, I'd really just like to split it between, say, an S&P index and a NASDAQ index, continue to make monthly contributions, and not really have to worry about it.

What's the best way to go about doing that?

Thanks in advance!

jason
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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23476 of 75335
Subject: Re: IRA Question Date: 7/19/2000 4:34 AM
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My question is -- can I take that money and put it elsewhere, manage it myself? As I have other stock invesments, I'd really just like to split it between, say, an S&P index and a NASDAQ index, continue to make monthly contributions, and not really have to worry about it.

You can roll the account elsewhere, but there are special rules with respect to a SIMPLE during your first 2 years of participation. See page 56 of IRS Publication 590, which you can download from http://www.irs.gov/forms_pubs/index.html.

You will not be able to make additional contributions to the SIMPLE since you're no longer working for the employer who sponsors it.

TMF ExRO
Phil Marti

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Author: jasonbarker Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23485 of 75335
Subject: Re: IRA Question Date: 7/19/2000 2:02 PM
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My question is -- can I take that money and put it elsewhere, manage it myself? As I have other stock invesments, I'd really just like to split it between, say, an S&P index and a NASDAQ index, continue to make monthly contributions, and not really have to worry about it.

You can roll the account elsewhere, but there are special rules with respect to a SIMPLE during your first 2 years of participation.

You will not be able to make additional contributions to the SIMPLE since you're no longer working for the employer who sponsors it.

Hmm. Is that just during the first two years, or is the money now stuck there forever, with me unable to add to it?

I'll go look at the form.

Thanks!

jason

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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23486 of 75335
Subject: Re: IRA Question Date: 7/19/2000 2:09 PM
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Hmm. Is that just during the first two years, or is the money now stuck there forever, with me unable to add to it?

A SIMPLE is an employer-sponsored plan, so to contribute you must be working for an employer who sponsors one. Without an employer-sponsored plan to contribute to, you're limited to the $2,000 annual IRA contribution that's available to anyone with $2,000 in earned income.

TMF ExRO
Phil Marti

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Author: BGPenhollo Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23581 of 75335
Subject: Re: IRA Question Date: 7/24/2000 8:26 AM
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Jason posted...

"I'm a fairly young guy, but when my employer offered an IRA with a 1% salary match, I jumped at the opportunity. I've been contributing $50 a month for about a year now."

Hi Jason,

It would seem like you'd have about $600 to $1,000 in your 401K. You could select an on-line discount broker like E*Trade or Ameritrade or one of a dozen others and transfer your IRA to them. I am not sure if you can then contribute to that IRA but you may be able to open a Money Market within an IRA at the same broker since $50 a month will not exceed the $2,000 IRA contribution limits (assuming you are earning at least the amount you intend to contribute monthly)and make your $50 monthly contribution until you have enough saved for a yearly purchase.

If you are thinking of indexing anyway, you might want to consider Vanguard's index funds. Vanguard is very helpful and should be able to explain what you can do and provide the forms for making the IRA transfer and automatic contribution to one of their index funds.

If Vanguard does not take $50/month automatic transfer, look around there are some mutual fund firms that do.

BGP



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