The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: 401k to IRA - Liquidate First?? Date:  9/5/1999  8:39 PM
Author:  FoolishLikeaFox Number:  13669 of 101033

So will the funds be liquidated automatically in the transfer, or should we direct the current 401-k custodian to switch the mutual funds into a money market account before we transfer into the IRA?

I've done it both ways this year so I'll give you my experience. The form you fill out with the new broker should have a check box for whether you want the assets liquidated before the account is transfered.

Which to do? Well, liquidating first will save the brokerage fee as you said, but the money will be inaccessible, out of the market, and making money for the custodian for several weeks, while the transfer is in process. Very agravating if the funds in question pick that period to have a big surge.

Also check with the new broker about commissions on trading mutual funds. They may be considerably higher than for stocks.

Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us