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Before I make a mistake, I figure I had best ask my fellow Fools for some advice. I have a 403(b) through Fidelity with a few thousand dollars. I like this account, seeing as my employer matches my contributions 2 for 1. However, American Express is offering a fee-free IRA for life if you open an account with $2000. I have the cash, but it is slated for a down payment for a house so I'd rather not fork over that much if avoidable. My question is this: can I rollover a portion of my 403(b) to Amex? Can I do this without incurring a penalty? If I can, is it Foolish to do so?

Fool on!

Mike
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No. of Recommendations: 1
Greetings, Mike, and welcome. You asked:

I have a 403(b) through Fidelity with a few thousand dollars. I like this account, seeing as my employer matches my contributions 2 for 1. However, American Express is offering a fee-free IRA for life if you open an account with $2000. I have the cash, but it is slated for a down payment for a house so I'd rather not fork over that much if avoidable. My question is this: can I rollover a portion of my 403(b) to Amex? Can I do this without incurring a penalty? If I can, is it Foolish to do so?

The money in your 403(b) plan with your current employer is not eligible for transfer to an IRA at this time. In general, you must leave that job before you may transfer the money to an IRA. Because you are still employed. it looks like you will have to come up with another source of funds to open the AMEX IRA you desire. But given that AMEX offerings are generally more expensive than those available elsewhere, you may want to do some further checking before you bite on that "fee-free of life" gambit. All they're probably talking about is the annual administration fee on the IRA itself, and many other less expensive providers offer that feature as well.

Regards..Pixy
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