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Author: jenkinra Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76112  
Subject: Rollover or not? Date: 2/6/2001 2:45 PM
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I'm 58, have retired, still have significant funds in a 401K. At this point, is it worth it to open an IRA? I'm at the point where I want to start using some of these funds. Can a person have more than one IRA?
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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: 27726 of 76112
Subject: Re: Rollover or not? Date: 2/6/2001 3:13 PM
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You can have all the IRAs your little heart desires.
Your 401k is limited as to investment options. Just because you may start drawing on these funds soon doesn't mean you will take them all out at once. You'd rather have more options.
Yes, it is worthwhile to roll to an IRA. Do it with a mutual fund company if you are new to investing, and get an index fund while you study which particular stocks you would like to own. Then you might like an account with a discount broker for individual stocks.
Best wishes, Chris

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Author: jenkinra Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27727 of 76112
Subject: Re: Rollover or not? Date: 2/6/2001 3:32 PM
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Thanks for the quick reply. I assume the $2K annual contribution limit is in place, regardless of the number of IRA's? My 401K already utilizes an index fund, which I participate in, but I am ready to get into individual stocks, and some vehicles outside of a mutual fund company. Will using a broker permit unlimited avenues, or would I need to setup individual IRA's? Can I transfer (rollover?) funds from one IRA to another?

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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: 27728 of 76112
Subject: Re: Rollover or not? Date: 2/6/2001 3:43 PM
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"I assume the $2K annual contribution limit is in place, regardless of the number of IRA's?"

You may only contribute $2000 to your IRA annually. If you have multiple IRAs, you may divide that $2000 up any way you like, but may not contribute more.


"My 401K already utilizes an index fund, which I participate in, but I am ready to get into individual stocks, and some vehicles outside of a mutual fund company. Will using a broker permit unlimited avenues, or would I need to setup individual IRA's?"

You can use a discount broker for a stock on any exchange that broker uses. If you have in mind a foreign stock, that can get hairy, but one IRA is fine for any stock for which you can find a quote in your U.S. daily newspaper.

" Can I transfer (rollover?) funds from one IRA to another?"

You can transfer money directly from one IRA custodian to another as often as you like. (If it is done directly from one custodian to another and both are IRA accounts, that is not called a rollover.) And it is perfectly fine to move your 401k to one custodian and then move part of the funds immediately to a different one. If you would like to have both mutual funds and individual stocks, that is a reasonable thing to do, particularly if the amount in the 401k is substantial. Good luck!
Chris



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Author: walnutstreet Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27738 of 76112
Subject: Re: Rollover or not? Date: 2/6/2001 6:19 PM
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Hi,
Don't forget that if you roll to an IRA you have to wait till you are age fifty-nine and one half before you can take it out for use, without penalty. If you leave it in your 401k, and you quit or retire from your employer at age 55 or above, you can use your 401k funds without penalty.
A small point but if you plan to use the money soon it may change your mind about rollovers for a while.
Regards

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Author: jenkinra Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 27753 of 76112
Subject: Re: Rollover or not? Date: 2/7/2001 2:12 PM
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Good point, which I plan to take advantage of by rolling over only a partial amount of the 401K; keeping the remainder for liquidity.

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