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<<<<I contacted my discount broker and was told that I could not rollover an IRA mutual fund into their IRA account. I could only rollover stocks that they offer. Is this typical of discount brokers? Is there another discount broker that I could use that will allow me to do this?>>>>

Crosenfield: "You can accomplish what you want but doing what actually is a rollover. You call your mutual fund company and tell them you wish to transfer your IRA money (or some of it) to a different account. You sell shares and take the cash. You have 60 days from the day that check is cut to deposit the money, every cent of it, with the discount broker to fund your new IRA.

If you pass the 60 days, the whole thing is a premature distribution, taxable and if you are under 59 1/2, penalties.

If you don't deposit all of it within the 60 days, that part which you didn't deposit is a premature distribution, as above.

Since you want to buy stocks, it should be fine with you for the mutual fund company to sell your shares. If the broker were going to get a commission, you'd rather the mutual fund company did it."


Chris, why not just do a trustee to trustee transfer after liquidating the mutual funds to cash? What I read between the lines is that the discount broker does not want to deal with the mutual funds BUT would be happy to take cash if the mutual funds were liquidated before the transfer.

I try to avoid taking possession of the funds; less chance for error with tax consequences.

Regards, JAFO



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