Home  >  Financial Articles and Q&A  >  Can I trade money in my Roth Ira through a brokerage...

Can I trade money in my Roth Ira through a brokerage account I have with another firm? Do any fees apply if I do?

Feb 19, 2014 by Brent from San Diego, CA in  |  Flag
3 Answers  |  6 Followers
Follow Question
4 votes

Hi Brent,

You can transfer your ROTH IRA to another custodian (another brokerage firm, mutual fund company, bank, etc.) without any tax consequences as long as the funds go directly from your current ROTH to your new ROTH. When you open your new ROTH account tell the new custodian that you want to do a transfer from another ROTH and they will provide you with the proper paperwork. Again, as long as you don’t get a check in your name you are fine. In any case you would not have tax consequences if you are over age 59-1/2 and have had a ROTH IRA for 5 years. But best to do the custodian to custodian transfer and not worry about it.

Your current custodian most likely will charge your account a termination fee. Fees typically range from $50 to $100.

Hope this helps.

Comment   |  Flag   |  Feb 19, 2014 from Woodbridge, VA

1|600 characters needed characters left
2 votes

You can have the Roth IRA at the same brokerage firm, but it has to be separate from your other brokerage account.

Comment   |  Flag   |  Feb 19, 2014 from Canton, GA

1|600 characters needed characters left
1 vote

Brent, your Roth IRA is being held somewhere. If it is being held at a brokerage account, you can trade there. If it is being held, perhaps at a mutual fund company, you can only trade with the options there. So if you wanted to trade at any brokerage firm, and the account is not being held there, you would just open a separate Roth IRA account at your brokerage firm of choice, and then transfer the account from wherever it is to your new account. You cannot mix the funds of your Roth account with funds that are not titled as a Roth account. It is all about how the account is titled.

The fees will be those of the firm that is holding the account. So there might be an annual fee of $35 or $50, and the trading fees will be whatever your brokerage firm charges. If your account is at a mutual fund company, there could be a small surrender charge, but there is no charge to trade to different funds within the fund family. If it is in an annuity, there could be surrender charges up to 7% or more. I hope this helps.

Comment   |  Flag   |  Mar 06, 2014 from Delray Beach, FL

1|600 characters needed characters left