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agove wrote:
<<My company currently uses a full-service brokerage for our SEP IRA's.>>snip<< I think I could convince the powers that be to switch away from the full-service broker, if I could find a SEP IRA administrator with the following traits>>

1) My reading of my Form 5305-SEP seems to indicate that you can direct your employer to make SEP deposits into _your_ IRA. Specifically:

The employer makes contributions directly to an IRA set up by an employee with a bank, insurance company, or other qualified financial institution

Are you sure what you have is a SEP-IRA (or SARSEP-IRA)? Perhaps the full-service broker is just a convenience relationship your employer has developed to help those employees who don't have an interest in researching such things on their own? Note that commissions and loads must come out of funds in the IRA - so the only advantage of the current situation might be that your company may be paying your IRA administrative fees. Which sum to all of $10-$30 for accounts under $10k at most fund companies.

2) On a related note, I've heard of no restrictions on SEP-IRA rollovers. At worst, you should be able to roll your funds out of the full-service broker's IRA into your own self-directed, self-chosen IRA elsewhere. Most brokerages provide money-market funds with no load to park the money in meanwhile.

3) Just because a broker gives advice doesn't mean you have to take it. Have you asked him what it will cost to invest in a specific index, such as the Vanguard S&P500 index?

Basically, you're getting robbed,
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