Skip to main content
No. of Recommendations: 0
Whenever you go looking for an IRA custodian, the main considerations are 1) investment types (stocks, bonds, mutual funds, etc), 2) costs, and 3) rules/convenience/etc.

If you plan to invest only in mutal funds, a major mutual fund house like Vanguard or Fidelity could be a good place to look. They have excellent mutual funds, good customer service functions and reasonable fees. For stocks or bonds, you may choose a discount broker. Most brokerage accounts allow a wide range of investments including mutual funds and stocks. These days, many mutual fund companies also have discount brokerage operations--giving them plenty of flexibility too.

The cost considerations are pretty straight forward. Most have an annual account maintenance fee--typically about $40. Some also have transaction fees, minimums, and if you plan on stocks, you will want to know about commissions. For mutual funds consider loads and other fees.

In the area of rules, especially after retirement, you may want to consider the distribution plans they offer and their convenience. Some will mail checks, some will use electronic transfers, some will direct deposit to brokerage accounts, etc. Choose the overall plan that best meets your needs and your goals.

As you say you don't need the funds and you face mandatory distribution, you may want to consider when to take the funds out of the account to minimize your income taxes. You can also consider various gifting strategies to move the funds out of your estate and perhaps to those who have a great need. Some methods such as charitable gifts or charitable remainder trusts could be used to reduce income taxes on the distributions and perhaps later estate taxes. Gifts to family members can be used to reduce estate taxes.

Best of luck to you.

Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.