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Greetings, Adtech, and welcome.

<<I AM A 40 YR OLD SELF-EMPLOYED FIRST TIME FOOL

I HAVE A FEW QUESTIONS AND WOULD LOVE SOME FEEDBACK

1) I HAVE READ THE POSTINGS ON RESCUING A DYING IRA FROM THE HANDS OF A DISINTRESTED INS. GUY. MY QUESTION IS CAN THEY (THE INS.GUY) PENALIZE ME FOR TRANSFERING THESE FUNDS TO ANOTHER ACCOUNT?>>


Ouch! Puh-leeze turn off that cotton-pickin' Caps Lock key. It not only makes your post difficult to read, it's the on-line equivalent of shouting. Many regard it as insulting, let alone rude behavior. I know you didn't mean it that way, so just keep that in mind for future postings.

In regards to your question, Zev aka Zgriner aptly pointed out that any penalties or fees for switching your IRA depend on the agreement you have with the current custodian. Both could apply, so you have to check with your current provider to see if they do.

<<2) IF I LEAVE THIS ACCOUNT A REGULAR IRA. CAN I OPEN A ROTH IRA AND FULLY FUND BOTH IN THE SAME CALANDER YEAR.(IE 4K)>>

No, you may not. The total allowable combined contribution to your traditional and/or Roth IRA cannot exceed more than $2K per year.

<<3) IF NOT WOULD IT BE BEST TO SELF-MANAGE THE ORIGINAL IRA, FULLY FUND THE ROTH AND CONTRIBUTE AS MUCH AS POSSIBLE TO A SEP.>>

"Best" is in the eyes of the beholder. If all you can do is make a nondeductible contribution to an IRA, then generally it makes sense to do that in a Roth IRA for the tax-free withdrawals later. The SEP will allow part of your current income to be tax-deferred. How much you contribute, how you invest, and how you manage those investments is strictly up to you. Fools like self-directed accounts so as to give us as much control as possible to gain the greatest flexibility in investment options.

Regards……Pixy
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