What can a Fool do?I got a call from my old job (part-time college 3-6 years ago) saying that they were audited and should have contributed to a SEP-IRA for me for those years).Surprise! They opened a SEP-IRA account for me at Fidelity with @$1900. That's great!But what can a fool do with it?? I can't trade stocks with it. It is a mutual fund account, but from what I can tell, most/all of the funds have a minimum $2500 initial investment or more!Can I add to this account even though it's from a past employer and I now have a 401 with my current employer?Can I rollover this account to something else and should I?THANK YOU for any direction you can provide!
The account being under the minimum won't cause Fidelity to refuse the account; they are likely to assess a fee if it is under $2500 on the annual date for determining such things, which I think is in November. You can contribute $2000 annually to an IRA even if you are currently under a retirement plan. It may or may not be deductible if you are under an employer's retirement plan. You can add that $2000 to the SEP IRA if you wish, or you can add enough to bring it up to $2000. I believe the minimum is $2500 PER FUND so you are for the moment limited to one. You could add just enough to bring it up to the $2500 total and put the rest in your regular IRA if you wish-- you can have multiple IRAS and can divide up your annual $2000 contribution any way you like. Best wishes, Chris
If you read the fine print on most basic fidelity funds, they usually have lowered or waived minimums for "prototype retirement accounts", which probably includes your $1900 SEP IRA. With that amount, I'd just pick one fund (like maybe an index fund) and stick it all in.- Olivia
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