Small Roth IRA looking to get out

[Guest Brian Nuffer]

My wife has a Roth IRA. She donated into it while working for a previous employer a few years ago. In it she has less than $1000 dollars and is no longer contributing to it. She is charged a $35 annual maintenance fee. What is her best option? Should we keep it as is or should we roll it into something different and how do we go about doing this? She does not need this for retirement. She is 29 years old and is just looking to consolidate this or get out.

Thank you

[John G]

It is hard to answer your question with the facts you provided. When did you establish this account? Are you trying to build up retirement assets? What is your age? Do you need these funds? You don't normally have a Roth IRA "though a job" so that part is confusing as well... are you sure you are talking about a Roth where you made contributions or is this some other kind of retirement plan? Do you qualify to continue making contributions to the Roth? In what are these funds invested? There are probably more Qs... I just wanted to give you a idea of some of the facts that are missing.

Is your question just about reducing the annual fee? If so, you have some options. Although the account is small, some custodians will accept an account like this and charge a smaller annual fee. You can ask the current custodian to waive the fee, some will if you ask. You can ask the current custodian to waive the fee because of other business you have with them - many have exceptions for folks with other assets. You can move the account to a custodian where you have other business and seek the waiver.

Yes, you can also close the account and under some circumstances you may owe nothing in taxes. But, that sounds a little like walking backwards. Most folks are trying to build their tax shelter assets.

Post again and someone will try to give you an answer.