Any IRA representatives here on the layoff board. With Wells Fargo closing inactive accounts, I read an article that said they'll send a check to you if that happens. I have an IRA, I never make contributions to it since my tax advisor said it doesn't really do much for your annual taxes to contribute. If Wells Fargo closes my IRA and sends Me a check, will avoid penalties if I quickly put the IRA in another financial institution? Most likely would put it in a Credit union with all the mass branch closings going on in the banks nationwide. TIA.
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Thank you everyone. I hope Wells Fargo doesn't close my IRA and mail me a check. I was just reviewing my form 5498, if they close & mail me a check..I will seriously consider having my Credit Union convert it to a Roth IRA. Hearing more about Roth IRA's was awesome to read about here. I think there may be some interesting changes when I turn 59 1/2 in the future. I just never thought of my bank Wells Fargo closing my IRA. It's not a huge balance, so as one person pointed out here it could be closed. I've saved in it for 35 years. I've been afraid to look at my 401k. I saw on the news this morning that alot of 401k's are hit hard due to the stock market struggling. WFB should have a hopefully good report on April 11th. I've been following that story too. It's just a shame they have had to have such a good financial report at the heartache and financial pain & suffering of severed American employees.
@av+1jrahv6ra Or do both. Max 401k then max your ROTH/Trad IRA.
To a piece of the OP that has not been addressed, an IRA can be REFERRED to as inactive by the fiduciary or sponsoring employer but this is typically balance based and not activity based.
Eg: Balance of sub-$5k with no contributions for some length of years or no longer employed by the sponsor then the sponsor wants you off the plan.
The details have always been laid out in the notice as to why a participant is being dropped. And I’ve never seen this happen on an account with a high balance. But things can always change. It behooves a sponsor to drop low balance accounts to make it easier to match the means tests for HCE’s and abide by federal regulations for employee participation in retirement options.
Well, yeah, you should max your 401k, IRA, 529s, HSAs, etc.
Some say, instead of maxing your 401k, past match, put it in an IRA up to the limits. Tax benefits are the same, but you have 1000x more investment options in an IRA and can sometimes be cheaper
You can have an IRA on top of the 401k, there are just contribution limits and rules around it.
IRA Member here, --- > Tiocfaidh ár lá or for you English Loyalists ---> 'Our day will come'
max your 401k to the match? How about max your 401k to the max IRS limit.
Exactly...more bad info. In fact, in a perfect world, you'd max your 401k to the match then contribute to your IRA as you have more investment options.
Also, the OP needs a new tax advisor, because all of this could have been answered and provided bad advice on contributions.
I've never heard that you can't have an IRA if you also have a 401k. I have had both for years and know plenty of others who do, too. This is false information @ a6+1jrahv6ra.
IRAs can never go inactive. They are retirement accounts that will live as long as you do.
There is a Traditional IRA which saves taxes but because you have 401k options you do not qualify. But you can open one in your spouse's name and save on taxes assuming they do not have a 401k.
You have 60 days to do a rollover contribution to another institution. Your IRA may not be inactive just because you dont make regular contributions. Check with the bank first. Oh and get a new financial advisor. Contributions to an IRA do make a difference tax wise but more impact the higher your earnings. At a minimum your advisor should have been telling you to make non deductible Roth IRA contributions not do nothing.