UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: TXAliOop Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Rolling IRA into Discount Broker Account Date: 2/6/2001 4:26 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Hi,

This is my first post on this board and I hope I am not repeating a question already posted.

I would like to rollover my mutual fund IRA into my discount broker account so that I can buy stocks instead. I contacted my discount broker and was told that I could not rollover an IRA mutual fund into their IRA account. I could only rollover stocks that they offer. Is this typical of discount brokers? Is there another discount broker that I could use that will allow me to do this?

Thanks,

Carol
Print the post Back To Top
Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27732 of 76418
Subject: Re: Rolling IRA into Discount Broker Account Date: 2/6/2001 4:44 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Some discount brokers handle mutual funds, others do not.
You can accomplish what you want but doing what actually is a rollover. You call your mutual fund company and tell them you wish to transfer your IRA money (or some of it) to a different account. You sell shares and take the cash. You have 60 days from the day that check is cut to deposit the money, every cent of it, with the discount broker to fund your new IRA.
If you pass the 60 days, the whole thing is a premature distribution, taxable and if you are under 59 1/2, penalties.
If you don't deposit all of it within the 60 days, that part which you didn't deposit is a premature distribution, as above.
Since you want to buy stocks, it should be fine with you for the mutual fund company to sell your shares. If the broker were going to get a commission, you'd rather the mutual fund company did it.
Best wishes, Chris

Print the post Back To Top
Author: 1HappyFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27733 of 76418
Subject: Re: Rolling IRA into Discount Broker Account Date: 2/6/2001 4:53 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
While USAA is not a deep discount broker (trades start at $24 but get cheaper if you trade frequently) they will accept mutual funds and into their self directed brokerage IRA. You can visit www.usaa.com for details.

USAA is a not-for-profit company. Their insurance offerings exclude non-military, but their investment and banking operations are open to all.

1HappyFool


Print the post Back To Top
Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27735 of 76418
Subject: Re: Rolling IRA into Discount Broker Account Date: 2/6/2001 5:19 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<<<<I contacted my discount broker and was told that I could not rollover an IRA mutual fund into their IRA account. I could only rollover stocks that they offer. Is this typical of discount brokers? Is there another discount broker that I could use that will allow me to do this?>>>>

Crosenfield: "You can accomplish what you want but doing what actually is a rollover. You call your mutual fund company and tell them you wish to transfer your IRA money (or some of it) to a different account. You sell shares and take the cash. You have 60 days from the day that check is cut to deposit the money, every cent of it, with the discount broker to fund your new IRA.

If you pass the 60 days, the whole thing is a premature distribution, taxable and if you are under 59 1/2, penalties.

If you don't deposit all of it within the 60 days, that part which you didn't deposit is a premature distribution, as above.

Since you want to buy stocks, it should be fine with you for the mutual fund company to sell your shares. If the broker were going to get a commission, you'd rather the mutual fund company did it."


Chris, why not just do a trustee to trustee transfer after liquidating the mutual funds to cash? What I read between the lines is that the discount broker does not want to deal with the mutual funds BUT would be happy to take cash if the mutual funds were liquidated before the transfer.

I try to avoid taking possession of the funds; less chance for error with tax consequences.

Regards, JAFO





Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27740 of 76418
Subject: Re: Rolling IRA into Discount Broker Account Date: 2/6/2001 6:41 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Sell the mutual funds and then do trustee-to-trustee transfer would also work just fine.
Thanks for suggestion.
Chris

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement