Interview three planners to make sure you are comfortable before deciding, and make sure fees are discussed thoroughly in free consultations.
QSince 1983, I've been a customer of Merrill Lynch. First I had an IRA there and then a Roth account. I closed the account and transferred it to a low-cost firm. Merrill charged me $75 to do this. How can they do this? Also, the process is taking 30 days. Is there something wrong?
Chuck
AUnfortunately, fees to transfer accounts are quite common. So consider a firm's fee structure before doing business there. Ask about transfer fees and administrative fees in addition to commissions and other charges. Fees vary.
It's easy for a firm to impose a transfer fee on a customer. Because you are leaving anyway, the firm does not have to worry about losing your business. And the firm might not be in a hurry to give up the assets either.
There probably is nothing wrong with the delay, but I would check on the status. I generally advise people when moving an account to another firm to have the new firm handle the transfer for them. You simply fill out a request form with the new firm, and that firm does the work for you. There's an incentive to handle the matter quickly because the firm wants to have your assets.
Also, when moving an IRA, Roth IRA or rolling a 401(k) into an IRA, be cautious about removing the money yourself, pocketing it, and taking your time about moving it into another account at another firm. IRAs and 401(k)'s are not taxed as long as the money stays invested until you retire at 59 1/2 or later.
But if you remove the money while deciding to move it elsewhere, you can trigger taxes if you hold onto the money too long.
Letting a reputable financial planner, mutual fund company or broker handle the transfer for you generally makes the transaction seamless.
But you should always check to make sure the move occurs within a couple of weeks.
Gail MarksJarvis is a Your Money columnist.
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