Your column titled “Roll Over Now”
In this column you say “Note: No pre-existing mutual funds or stock holdings will be transferred in the process.”
I don’t understand what this refers to. If your “old” IRA has mutual funds, surely they will be transferred to your “new” IRA.
Terry Says
No, that’s not true. Many of the funds in your old 40l(k) are proprietary funds – -not available in IRAs, even if –for example — Fidelity manages your company 40l(k) and you decide to roll into a Fidelity IRA. In almost every instance, a rollover will require the liquidation of stocks or funds inside the old plan, and then you can repurchase them (or similar ones) inside your IRA rollover. Taxes are not an issue, remember, because all gains in retirement plans are taxed at ordinary income rates only when the money is withdrawn.
