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Author: legalwordwarrior Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 201  
Subject: What to do with Rollover IRA? Date: 1/19/2010 4:45 PM
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Hi all,

A few years back (2007) I left a company in which I had a small 401(k) that, because I wasn't vested, I was required to roll over. I went with a Wells Fargo Rollover Fund and pretty much just put the thing on autopilot. It only had a little over $2K in it and I am now with a job that takes a sizable amount of my paycheck and puts in TRS, so I've pretty much ignored the IRA. Until yesterday as I was going through some mail and found my end of year statement from WF. I'm losing money on this thing and need to do something, but I don't know exactly what to do with it.

The numbers (roughly) are like this:

1/1/2009 - $2295.00

Less Admin -$ 10.00

Plus Interest$ 3.80

12/31/2009 - $2288.80

What should I do with this thing? At this rate I'll just spend all the money on fees and it will be zero by the time I retire. Can you move an IRA once it's already been rolled?

LWW
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Author: kingbee2000 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 180 of 201
Subject: Re: What to do with Rollover IRA? Date: 1/22/2010 2:29 PM
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well it looks like you have left it in cash so you are not going to get a good return, especially with a $10 fee. You can see what options WF has to invest in. With that small amount you could put it in a total stock market index fund or S&P 500 index fund.

Probably the better thing to do would be to ask your employer if they will accept a rollover from an IRA to your current 401K. Not all providers will. You may have to show that you did not make any extra after tax contributions.

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Author: legalwordwarrior Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 181 of 201
Subject: Re: What to do with Rollover IRA? Date: 1/22/2010 4:25 PM
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well it looks like you have left it in cash so you are not going to get a good return, especially with a $10 fee. You can see what options WF has to invest in. With that small amount you could put it in a total stock market index fund or S&P 500 index fund.

Yes, it was quite a let down to have to give up all my overseas funds that I was contributing into while at my previous employer, but WF didn't allow any of them in their IRA accounts. To give you an idea of the type of income this little account was making: I put $50 per pay period into the account starting 6 months after I began working there. There was no matching, and the fund was up to around $2,000 when I left 18mths later. I would have been happy to leave it there if I could have.

Probably the better thing to do would be to ask your employer if they will accept a rollover from an IRA to your current 401K. Not all providers will. You may have to show that you did not make any extra after tax contributions.

Unfortunately, this is not an option. I don't have a 401(k) with this job. We put contributions into TRS (Teacher Retirement System). This system allows employer matching, but does not allow the employee to add extra funds into the account.

LWW

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Author: kingbee2000 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 182 of 201
Subject: Re: What to do with Rollover IRA? Date: 1/22/2010 4:51 PM
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Another option is transferring the account to a brokerage like Sharebuilder. This is good for small accounts - I had my Roths there until I outgrew it. I currently have my ESAs there. They have some No-Transaction Fee mutual funds with low minimums (some at $250) you can get a fairly diversified portfolio for very little cost. They used to charge an annual fee but i don't believe they do that anymore

Unfortunately WF will probably charge you a transfer fee.

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Author: legalwordwarrior Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 184 of 201
Subject: Re: What to do with Rollover IRA? Date: 1/25/2010 9:32 AM
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Sharebuilder is now through ING, isn't it? We already have an ING account, so I might try that. I have no doubt that WF will charge me a fee to transfer the funds, but at this point, I might as well take that hit at once, vs. paying $10 a year on an account that makes $3:0)

LWW

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