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Author: 17ryan Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75339  
Subject: Surprise SEP-IRA! What can a fool do? Date: 12/11/2000 5:57 PM
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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!
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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: 26547 of 75339
Subject: Re: Surprise SEP-IRA! What can a fool do? Date: 12/11/2000 7:34 PM
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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

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Author: oliviacw Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26548 of 75339
Subject: Re: Surprise SEP-IRA! What can a fool do? Date: 12/11/2000 7:53 PM
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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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