| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 743.1 | The standard practice is there is no standard practice | ZENDIA::FLEMMING | | Thu Jul 14 1994 07:23 | 8 |
| Read their prospectus and business terms which are required to spell
out the fees. It varies all over the map and also depends on what they
are trying to sell at the moment and what part of the demography they
are after. Do try to get answers that are definitive, i.e., no fee ever
if a minimum balance is held forever, etc. Not, no fee the fisrt year
or the next year if you get 6" taller. You can find almost anything you
look for to get your initial business. Just make sure it doesn't cost
an arm and a leg to continue to do business with the firm.
|
| 743.2 | Scudder has no fees | ASDG::FERRARI | | Thu Jul 14 1994 07:46 | 5 |
| I know that Scudder allows you to open a no-fee IRA, the minimum amount is $500
per fund. Scudder is a mutual fund company which offers no-load funds.
I have dealt with other companies in the past that charged up to $35 per account
per year.
|
| 743.3 | | BOBSBX::QUINLAN | Mark Quinlan, Alpha Personal Systems | Thu Jul 14 1994 11:01 | 14 |
| I believe Fidelity Investments charges $10/fund per year for each fund in your
IRA account with a $30 maximum. You may want to check into Waterhouse
Securities, too. In their attempt to compete with Charles Schwab they may have
a lower limit on their no-fee IRA.
In my experience most fund companies charge $10-12 per fund/per year for
IRA accounts.
Another fee to check into is the account "transfer fee" or closing fee which
is what you would pay to tranfer your account from say Fidelity to Schwab.
Most legit IRA managers do not charge such a fee, but I have heard
this fee can go up to $50.
Mark
|
| 743.4 | pay only once | ASDG::MISTRY | | Thu Jul 14 1994 13:49 | 12 |
|
Fidelity waives the IRA fee for accounts with more than $5000.
The fee is assesed based on the acount balance in October of a
given year. Thus, if you started the account in november with a
$2000 1994 contribution, and then make a 1995 contrbution of $2000
and make a 1996 contribution of $2000 before october of 1996, you
would pay the fee only once (in 1995).
All of this assumes that all the money is in a single fund.
Kaizad
|
| 743.5 | | SUBPAC::MISTRY | | Mon Dec 12 1994 10:27 | 10 |
|
When a fund charges you an IRA maintainence fee of $10, and withdraws
it from your fund, does this have any tax implications? Is it treated
in any way as a withdrawal from the fund?
My wife forgot to pay up her $10 and had the fee deducted from her IRA
fund.
Kaizad
|
| 743.6 | Is it a tax loophole? | AWECIM::VERMA | Virendra, HLO2-1/A7, DTN 225-6518 | Mon Dec 12 1994 10:45 | 5 |
| I don't think this is treated as withdrawal from the fund as long as
it is being used to maintain IRA fund. This money is tax deductible by law.
Using IRA fund to maintian it is a smart way to get rid of 2% barrier. I have
not seen any ruling that the fund should be managed by after-tax money.
Seems to me a tax-loophole.
|
| 743.7 | Pay the Fee Directly | I18N::GLANTZ | | Thu Dec 15 1994 17:54 | 5 |
| It doesn't seem smart to me to use tax-sheltered IRA funds to pay the
annual maintenance fees. You slowly dribble out the corpus that way.
Better to pay the maintenance fee out of your own pocket, and let the
$10 build up through the power of compounding.
|
| 743.8 | and it might even be deductible | PCBUOA::GIUNTA | | Fri Dec 16 1994 08:44 | 3 |
| And if you do pay the IRA fee out-of-pocket instead of having it
deducted from your IRA account, you can deduct the fee on Schedule A
under investment expenses as long as you meet the 2% floor requirement.
|
| 743.9 | | ALLVAX::STAATS | parts is parts | Mon Apr 03 1995 16:18 | 12 |
| This is sort of related to fees on IRAs...
Have the tax laws changed regarding early surrendering
of an IRA? Specifically I was wondering if the 10% penalty has
been increased to 20%? (in addition of claiming the money as
income and taxes on that income). I assume the owner of the IRA
is responsible for paying the taxes and penalty, not the institution
the IRA was invested through? Or does the company withhold the
penalty and the taxes?
Thanks in advance.
todd///
|
| 743.10 | A Letter Stops Withholding | I18N::GLANTZ | | Mon Apr 03 1995 17:02 | 9 |
| If you request a premature distribution of an IRA, the financial
institution will withhold government penalties and taxes unless you
accompany your request with another request to not take such action.
If you neglect to request not to withhold, especially nice financial
institutions will hold your check and remind you to send in a do-not-
withhold letter.
Check with your financial institution for the exact wording.
|