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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121333  
Subject: Re: ?'s Re: Transfer from EJ to ShareBuilder Date: 6/3/2009 3:55 PM
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My wife has funds in an IRA ($12k) and Money Market Acct. ($24k) with an Edward Jones person who lacks the level of integrity we want in a financial advisor.

OK.

We want to sell our stock in an American Mutual Fund (the IRA) and move all the funds to a self managed ING Sharebuilder Account we also have.

The account with Sharebuilder needs to be an IRA account. If that's not what you already have, you'll need to open a new account with them. In any case, Sharebuilder is a fine place for an IRA account.

Questions:

What are the circumstances where we might be exposed to paying capital gains, or losses, on this transaction?


Done correctly, there will be no taxes on selling the mutual fund in the IRA and moving it to Sharebuilder. You just need to do what is called a Trustee-to-Trustee transfer. I'd contact Sharebuilder and have them walk you through the process. It's something they probably do many times each day.

Do we pay EJ a fee for the sale? What is the standard fee?

If EJ sells the mutual fund, you'll pay whatever you agreed to in your account agreement. You'll have to ask them the cost. It may also be possible to simply move the shares themselves directly from EJ to Sharebuilder.

In any case, EJ may have an account closing fee.

We know to put the IRA funds back into another IRA account.

Good.

We are also considering opening a Vanguard Index Fund account with the funds.

Which funds? The IRA money or the non-IRA money? I guess it really doesn't matter. Either one is fine as long as you keep the IRA money in an IRA.

Your thoughts and advice are deeply appreciated.

You're welcome.

--Peter
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