Can I roll over my traditional IRA in my bank to a mutual fund company?

Question

Hi,
I believe I have a traditional IRA with my bank and need to know if it is possible to roll it over to a mutual fund company? What is the process in doing so?

Answer 1

You can. But why would you?

For more and more people that would NOT be the right thing to do! (and those who tell you otherwise, just don't know yet!)

First off, you could move your IRA to most any brokerage firm.

Second, from there, you can buy/sell any of the mutual funds from any company you might want to park your money with. Why limit yourself?

Third, why even use mutual funds??? There are better (and cheaper) instruments out there with the same level of risk, but lower costs (and thus higher returns).

For instance, using ETFs. Just search my response on ETFs vs. Mutual funds, or contact me offline and I'll let you know more.

Hope that helps!

Answer 2

Show your account info to your new advisor. He can help you transfer the money (or if it would be better for you to keep your old money at the bank he could tell you that).

I have found the best traditional IRAs at American Funds and Vanguard. Fidelity was good, but has struggled alot over the last 8 years.

Answer 3

No do not use the terminology "rollover". You want to transfer your IRA account at the bank to an account at a mutual fund company. Complete the necessary paperwork at the MF company and they will do all the work to transfer your funds/securities to them.

Answer 4

Sure,

Just set up an account where you would like to transfer your funds, then contact the current broker (or bank) and tell them you would like to close your account there and have it rolled over to xyz company. They may charge you an exit fee of some kind, but as long as they send the funds to the new broker and not to you, you will not pay a penalty on the rollover.

Answer 5

Yes, you can...and it's a good idea. I've done it for two different people through Fidelity...log on to their web-site...it has phone numbers for reps ... they take care of most of it for you... they do the " contacting" etc.
You end up with a nice account that you can pick and choose investments in, right at your fingertips. Check on it nightly if you want... stay with one or two funds or buy stocks or ETF's .All kinds of " planning" and research materials available, too.

Answer 6

You can transfer your IRA to another financial firm.

MAKE SURE YOU DO IT IN ADVANCE BEFORE IT MATURES!!

You need to give a grace period between transactions.

2 weeks would be about right.