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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?

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)

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.

ANY INPUT WOULD BE GREATLY APPRECIATED!

FOOLDOM IS FREEDOM

THANKS FOOLS!!
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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?


Welcome, Adtech, I am not an expert at all, I am just replying to you on a few points I have learned, and the REAL smart folks here can touch up my reply! I want to show them I'm learning something around here & and am trying to pull my weight! ;-)

Regarding your first question, it depends on your particular account and company. Some take your money at the beginning, when you make each contribution and not at the end. Some don't take your money at all. If you roll it straight over into another tax-deferred retirement acct, you will not be assessed taxes. You can just call the company and ask them about fees for transferring.

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)

As I understand it, NO, you cannot contribute to both for a total of 4K for the same tax year from this year's earned income. I believe 2K is the max total per person. However, you could contribute a total of 4K if you have spouse, btween your two IRA's. (I am rolling over an old 401a into an IRA (this is more than 2K), PLUS funding a new IRA acct, or Roth for tax year '98 w/max 2K, and my husband is also contributing max 2K to some kind of IRA for '98. Rollovers of past years' monies in other retirement accts do not count toward your max. 2K per person for the current tax year.

3) IF NOT WOULD IT BE BEST TO SELF-MANAGE THE ORIGINAL IRA, FULLY
FUND THE ROTH AND
CONTRIBUTE AS MUCH AS POSSIBle

I will bow out here, as I'm not exactly sure what you mean...I hope I didn't confuse you, and I'd wait to have somebody brainier confirm this here! :-) meowiz
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This may sound silly, but posting a message in all caps is considered shouting. Please use lower-case.

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?

The short answer is that it depends on your account agreement.

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. 2K is the most you can contribute between a regular and Roth IRA.

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.

It's the TMF's opinion that it is always better to self-manage any investment account.

Zev
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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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Meowiz sez:

<<Welcome, Adtech, I am not an expert at all, I am just replying to you on a few points I have learned, and the REAL smart folks here can touch up my reply! I want to show them I'm learning something around here & and am trying to pull my weight! ;-) >>

And a right good job you did, too. J

Regards….Pixy
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