Investments

[girldetective]

To start simply, I need to transfer some dough from a joint IRA to my own acct. I would like to have this moola invested, while at the same time have access to it through a checking acct. It would be unlikely I would access it, but I want the liquidity.

I dont know if there is a financial product out there that allows me to do this, while protecting me from tax liability. Do you? Nor do I know if the funds transferred have to go into an IRA again, or if they are mine to invest as I would like. Again, its the tax liability that Im looking at.

I will talk to the investment manager, but I would like to go in with some info of products that would suit my needs.

Does anyone have any thoughts on this?

Thanks.

[Cynthetiq]

They should need to roll over into another IRA product. You can of course roll it over into a product that allows you to track and invest in mutual funds. As far as liquidity you don't want any penalties for early IRA withdrawal. if you are above 59 1/2 you don't have anything to worry about. prior to that there are strict rules as to what is acceptable for using the funds, in other words, you can't use the IRA funds for buying groceries or paying your credit cards off.

• OK for school
• First-home exemption
• Treatment differs for Roths
• Allowable distributions
• Payment of excessive unreimbursed medical expenses.

Hardship circumstances for penalty-free withdrawals
• Payment of medical insurance premiums while unemployed.
• Total and permanent disability.
• Distribution of account assets to a beneficiary after you die.

[girldetective]

Thanks for your thorough reply, Cynth. Informative.

However, I misspoke (musta been smoking again?). I should have said that the money was coming from another person's IRA to me. In other words, it is new money to me, not from a joint account as I said previously. My apologies.

I have my own IRA I can dump it in, which is performing fairly well in this economy overall, I guess. But as I said, I want these funds liquid. I suppose I will pay tax on it now in that case, but by doing so I wont take any sort of cash out penalty because it was never in an IRA of mine? Of course if I IRA it, the lower tax bracket of retirement comes into play on the amount of tax paid. In any case I think I may willing to pay the tax on it now, but I would like to avoid doing so if there is a product out there that features a protection of some sort.

Granted, it would be an unusual product if there was one but Im just checking around.

[snowy]

As far as I understand it (and we dealt with this when my grandfather died and left behind an IRA that was split between his children), you need to roll these funds into your own IRA, unfortunately--otherwise, unless you're over 59 1/2, you will pay a penalty by not rolling them into an IRA.

[girldetective]

Of course I hoped for soemthing else, but thats how Ive always understood it too, neighborgirl. Darn it.

[jorgelito]

Try ROTH IRA. No withdrawal penalty for initial investment.