Opening a new IRA at Fidelity for SEPP

L1: Opening a new IRA at Fidelity for SEPPMy SEPP IRA at Fidelity restricts my investments to Fidelity Mutual Funds. I can open a new SEPP IRA at Fidelity that has no restrictions.I want to transfer my entire balance to my new SEPP IRA account,and maintain my current withdrawal schedule. Will this process cause my plan to “bust”?2007-09-08 04:44, By: greeny, IP: [64.12.112.108]
L2: Opening a new IRA at Fidelity for SEPPProbably not, but we have some idiots at the IRS in DC National who can”t put one foot in front of the other to walk without putting it in their mouth first !!! Who knows when they will issue a coherent regulation/argument in this matter.2007-09-08 14:03, By: dlzallestaxes, IP: [151.197.36.5]

L2: Opening a new IRA at Fidelity for SEPPHello, Greeny:
I had my company 401k plan at Fidelity for the last 4-5 years that I worked. I was not all that happy with the funds that were offered in our 401k. The only two really good funds were Contra and Low Priced Stock. While those were great funds, I did not feel that they offered sufficient diversification. I asked for and received a lot of info from Fidelity regarding what they could do for me as a retiree via an IRA rollover. I read that documentation VERY closely and discovered that they have a lot of fees and that their fees were not as low as I would like. At that time, mid-2004, they were just starting to offer some low fee investments. While that was good, I thought that they were a bit late to the low fee party. My IRA / SEPP plan is at Vanguard and that has worked well for me. We also had a taxable mutual fund account at Vanguard for several years, so got to know the company and their offerings pretty well. I use all Vanguard funds for my SEPP / IRA. I”m not sure if this is required or not but do know that I am getting good diversification from the 9 stock, 3 bond, and 1 money market fund that I have.
Although there is a considerable lack of clarity in the IRS position regarding partial and even complete transfers from an IRA that is part of a SEPP plan, I would look very closely at the documentation that Fidelity has surely sent you about the no-restriction account and see what fees are required. They may well be considerably higher than the ones that you”ve been paying. On the other hand, it could be that although the new fees will be higher, you may think it worthwhile to pay them to get the diversification you want.
Ed
2007-09-09 17:17, By: Ed_B, IP: [67.170.159.37]