My agent wants me to roll my Roth IRA to another company (company1)that has better interest rates. Can I roll my roth ira to another company (company2) without penalties?
2007-11-14 03:24:49 · 5 answers · asked by HEWLETT 1 in Business & Finance ➔ Investing
Yes, you can. Have the new company do a direct transfer. Technically, they don't call it a rollover, just a transfer.
2007-11-14 03:57:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes. As long as you do not go over the $4000 total contribution for any tax year, the IRS does not care where you put it. However most companies do have custodial fees for low balance accounts (for example both Vanguard and T.Rowe Price charge $10 annually for IRAs with less than $5000) So it is best to consolidate those accounts to save money, and also make it easier to manage. Now for the decision on which company to choose. Vanguard has the lowest fund costs (lowest expense ratios) in the industry. They are client owned, (the funds own the company) so the expense ratio is only used to pay salaries of employees, and other management expenses. T. Rowe is also a low cost provider, but are publically owned, and spend a lot of money on advertising to attract investors for the funds as well as the company itself, which costs the funds money that could be better spent. My recommendation- consolidate with Vanguard.
2016-05-23 03:24:59 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Your agent wants you to roll your Roth IRA to another company so he can make a new commission. I think you should roll your agent into the trash! Please read my profile and email me. I have a suggestion for you. You can keep your Roth which you already paid him a commission for and assign it to a new and honest agent and it won't cost you a dime.
2007-11-14 03:56:03 · answer #3 · answered by Richard Jackel 3 · 1⤊ 1⤋
That depends on how much your agent is going to charge you for his services. I'd consider his fees a penalty.
A Roth IRA is yours to invest as you please. You don't need an agent to move it from one place to another as long as it is to another Roth IRA.
2007-11-14 03:47:46 · answer #4 · answered by from me to you 7 · 0⤊ 1⤋
Yes, you can do that. Make sure that you're investing in diversified, no-load mutual funds with expense ratios less than 1%.
2007-11-14 03:46:39 · answer #5 · answered by Kaptain Krakatoa 3 · 1⤊ 0⤋