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Hello,

This is my first post. I have always been a Fool but I am only now awakening to the fact. All those years of people pointing and saying fool, fool and I never knew what compliments they were giving me. Well, now for my question. I have a 401k that I need to rollover. Just for starters, till I git me some mur educatin, I was thinkig of investing most of the rollover using the Foolish Four approach and putting the rest of the rollover into an index fund. From what I have been reading on this site, it sounds like once I set up an IRA account with a broker I can then take the money I have and split it among different stocks and/or mutual funds as I please. Is that right? Also it sounds like the commissions you pay to purchase any stocks or funds are considered to be a part of your total $2000 per year contribution limit. Thats kinda cruddy if that is true. If anyone could confirm my suspicions I would appreciate it greatly.

Thanks,

the Semiconcious Fool
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From what I have been reading on this site, it sounds like once I set up an IRA account with a broker I can then take the money I have and split it among different stocks and/or mutual funds as I please. Is that right?
Yup. It's like any other brokerage account except the IRA rules apply to any money going in or coming out. That is, no margin buying, no short-selling, and no transfering to/from non IRA accounts except as contributions or distributions.

Also it sounds like the commissions you pay to purchase any stocks or funds are considered to be a part of your total $2000 per year contribution limit. Thats kinda cruddy if that is true. If anyone could confirm my suspicions I would appreciate it greatly.
Yup again. Any fees the account generate come out of the account.

For the straight poop, here's the Fool page on IRAs.
http://www.fool.com/money/allaboutiras/allaboutiras.htm

There's also a message board: SEP-IRA Stragategy.
http://boards.fool.com/Messages.asp?id=1380076000000000

Fox
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