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Subject:  Re: simple ira Date:  11/23/1999  5:11 PM
Author:  TMFPixy Number:  15630 of 96131

Greetings, Wicasa, and welcome. You wrote:

<<I have from my work a, Franklin Templeton Simlpe IRA.
As best that I can figure it is all mutal funds?? I'm not getting a warm fuzzy feeling with this, it feels out of my control, any advice out there? Also, I have a IRA that I am not contributing to, I would like to invest the money in stocks, is there someway I can move the money without penalty or invest in a retirement account that allows me the freedom to choose my own stocks? >>

Until you have been in the SIMPLE for two years, you may only transfer that money to another SIMPLE IRA. If you move it to a regular IRA, you will be faced with a deemed distribution that results in income taxes and a penalty of 25% for early withdrawal if you are younger than age 59 1/2. When that two-year period passes, you may then move the money to an IRA of your choice. As to your other IRA, you may move that to a self-directed IRA at the broker of your choice at any time without having to worry about taxes or penalties from Uncle Sammy. Any broker will be happy to help you arrange for such a transfer.


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