Ask Dr. LJ

[bluegargantua]

Hey Dr. LJ (economy degree)

I've got this IRA with my bank. I opened it when I switched jobs and dumped my paltry 401(k) money into it. It was worth about $500.

Today, the bank started charging "maintenance fees" and pulled $40 out.

So, here's the deal. Obviously, I need to do something with the money. It will never earn enough to offset the fees. In the past, I've been told that I can't roll this cash into my current 401(k) -- and consolidating my retirement savings this way is what I'd really like to do.

I don't want to just cash it in because first they tax you 20% for early withdrawal and what's left over gets taxed again as income which probably means I'd get nothing out of it.

What can I do with this stupidly small sum of cash?

Thanks
Tom

Comments

[foxtown.livejournal.com]

The other option is to put some more money in. A lot of places will charge extra for less money. You may want to call your current bank to see if that is what happened.