No. of Recommendations: 0
What can a Fool do?

I got a call from my old job (part-time college 3-6 years ago) saying that they were audited and should have contributed to a SEP-IRA for me for those years).

Surprise! They opened a SEP-IRA account for me at Fidelity with @$1900. That's great!

But what can a fool do with it?? I can't trade stocks with it. It is a mutual fund account, but from what I can tell, most/all of the funds have a minimum $2500 initial investment or more!

Can I add to this account even though it's from a past employer and I now have a 401 with my current employer?

Can I rollover this account to something else and should I?

THANK YOU for any direction you can provide!
Print the post Back To Top
No. of Recommendations: 0
The account being under the minimum won't cause Fidelity to refuse the account; they are likely to assess a fee if it is under $2500 on the annual date for determining such things, which I think is in November.
You can contribute $2000 annually to an IRA even if you are currently under a retirement plan. It may or may not be deductible if you are under an employer's retirement plan. You can add that $2000 to the SEP IRA if you wish, or you can add enough to bring it up to $2000.
I believe the minimum is $2500 PER FUND so you are for the moment limited to one. You could add just
enough to bring it up to the $2500 total and put the rest in your regular IRA if you wish-- you can have multiple IRAS and can divide up your annual $2000 contribution any way you like.
Best wishes, Chris
Print the post Back To Top
No. of Recommendations: 0
If you read the fine print on most basic fidelity funds, they usually have lowered or waived minimums for "prototype retirement accounts", which probably includes your $1900 SEP IRA. With that amount, I'd just pick one fund (like maybe an index fund) and stick it all in.

- Olivia
Print the post Back To Top