SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

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teen persuasion
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by teen persuasion » Wed Sep 18, 2019 9:38 pm

Have you checked with Fidelity about which funds you can access in their SIMPLE IRA? When I looked earlier this year, I couldn't see any low cost index funds on Fidelity's SIMPLE IRA allowed funds.

I do remember that Vanguard also only did 5305 accounts. Schwab did 5304, though. The forms for employer and employee were right on Schwab's website to print off and fill in, very clear and simple with only a few questions, and clearly stated what the default positions were if you didn't fill in a question.

krow36
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by krow36 » Wed Sep 18, 2019 10:24 pm

teen persuasion wrote:
Wed Sep 18, 2019 9:38 pm
Have you checked with Fidelity about which funds you can access in their SIMPLE IRA? When I looked earlier this year, I couldn't see any low cost index funds on Fidelity's SIMPLE IRA allowed funds. It sure does look like there are no index funds on the Fidelity SIMPLE IRA fund list! :( So much for Fidelity's big ad campaign touting their low and no cost index funds.
https://fundresearch.fidelity.com/mutua ... nvestments
There are no restrictions on the funds available in Vanguard's SIMPLE IRA. I think you should choose Vanguard rather than Fidelity!


I do remember that Vanguard also only did 5305 accounts. Schwab did 5304, though. The forms for employer and employee were right on Schwab's website to print off and fill in, very clear and simple with only a few questions, and clearly stated what the default positions were if you didn't fill in a question.

The fact that both Fidelity and Vanguard are willing to offer a SIMPLE IRA account for a Form 5304 refugee from another FI indicates that they do not need to use a Form 5304.

retiredjg
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by retiredjg » Thu Sep 19, 2019 7:12 am

krow36 wrote:
Wed Sep 18, 2019 10:24 pm
The fact that both Fidelity and Vanguard are willing to offer a SIMPLE IRA account for a Form 5304 refugee from another FI indicates that they do not need to use a Form 5304.
I don't think one can reach this conclusion.

I doubt that an employer can offer both a 5304 and a 5305 SIMPLE at the same time. That looks like two different retirement plans to me, something that is generally prohibited.

I'm thinking that Schwab may be the solution in this case since the employer already seems committed to 5304.

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A_Bond
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Thu Sep 19, 2019 9:10 pm

Thank you all for your opinions and info, I am weighing it all right now.

I specifically asked the Fidelity rep if ALL of the Fidelity index funds were available in their SIMPLEs. He said yes. I see he may have been 'mistaken'.

I am also still waiting for the Vanguard rep to email me back before proceeding further with anything.
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Spirit Rider
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by Spirit Rider » Sat Sep 21, 2019 4:42 pm

A_Bond wrote:
Wed Sep 18, 2019 5:22 pm
Here is where it gets a bit funky and this group's help is probably needed. Fidelity sets up all of the SIMPLE IRAS under a Form 5305 DFI, not a Form 5304. Could this cause any issues for the EMPLOYER by having a bunch of SIMPLE accounts set up under a 5304 (other employees) and a 5305 (for me). The Fidelity rep didn't think so, but any second, third or more opinions would be fantastic.
I ave been traveling for a few days and not following this thread.

Somehow this has all gotten confused. If your employer has a 5304-SIMPLE IRA plan, you are allowed to choose the SIMPLE IRA custodian of your choice. However, it is still the same 5304-SIMPLE IRA plan with multiple custodians. I do not know if Fidelity supports 5304-SIMPLE IRA custodial accounts, but you are not setting up a 5305-SIMPLE IRA at Fidelity. It is the employer who files the paperwork with the SIMPLE IRA custodian to open the account under their existing 5304-SIMPLE IRA plan.

When you are talking to an IRA custodian. You need to be clear that you are a employee participant in your employer's existing 5304-SIMPLE IRA plan and you want to choose your own financial institution for a 5304-SIMPLE IRA account under that plan. How does your employer accomplish that.

It is not an employer adopting a new adopting a new 5305-SIMPLE IRA plan.

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wildungar2000
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by wildungar2000 » Sat Sep 21, 2019 10:55 pm

A_Bond wrote:
Thu Sep 19, 2019 9:10 pm
Thank you all for your opinions and info, I am weighing it all right now.

I specifically asked the Fidelity rep if ALL of the Fidelity index funds were available in their SIMPLEs. He said yes. I see he may have been 'mistaken'.

I am also still waiting for the Vanguard rep to email me back before proceeding further with anything.
Spirit Rider wrote:
Sat Sep 21, 2019 4:42 pm
I do not know if Fidelity supports 5304-SIMPLE IRA custodial accounts
Pretty much this entire thread was what I went through 1 year ago. FYI, when I called Fidelity in Dec. 2018 and they informed me they do not support 5304-SIMPLE IRAs.

Just like the OP, I also was led to believe my employer was using Form 5305, but then when I finally got the Form I found out it was 5304. I ended up going with Vanguard and am just 100% VTSAX. In terms of Vanguard paperwork, you will need to fill out and give your employer the "SIMPLE IRA New Account Form" which is a 6 page form. Then your employer needs to mail that form to Vanguard along with their 4 page employer application form.

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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by retiredjg » Sun Sep 22, 2019 8:30 am

Spirit Rider wrote:
Sat Sep 21, 2019 4:42 pm
A_Bond wrote:
Wed Sep 18, 2019 5:22 pm
Here is where it gets a bit funky and this group's help is probably needed. Fidelity sets up all of the SIMPLE IRAS under a Form 5305 DFI, not a Form 5304. Could this cause any issues for the EMPLOYER by having a bunch of SIMPLE accounts set up under a 5304 (other employees) and a 5305 (for me). The Fidelity rep didn't think so, but any second, third or more opinions would be fantastic.
I ave been traveling for a few days and not following this thread.

Somehow this has all gotten confused. If your employer has a 5304-SIMPLE IRA plan, you are allowed to choose the SIMPLE IRA custodian of your choice. However, it is still the same 5304-SIMPLE IRA plan with multiple custodians. I do not know if Fidelity supports 5304-SIMPLE IRA custodial accounts, but you are not setting up a 5305-SIMPLE IRA at Fidelity. It is the employer who files the paperwork with the SIMPLE IRA custodian to open the account under their existing 5304-SIMPLE IRA plan.

When you are talking to an IRA custodian. You need to be clear that you are a employee participant in your employer's existing 5304-SIMPLE IRA plan and you want to choose your own financial institution for a 5304-SIMPLE IRA account under that plan. How does your employer accomplish that.

It is not an employer adopting a new adopting a new 5305-SIMPLE IRA plan.
It took me awhile, but I think what you are saying is that even though Fidelity does not offer a 5304 SIMPLE IRA plan, they may be willing to set up and hold an account under the employer's 5304 plan.

Is that right?

Spirit Rider
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by Spirit Rider » Sun Sep 22, 2019 9:43 am

:twisted:
retiredjg wrote:
Sun Sep 22, 2019 8:30 am
It took me awhile, but I think what you are saying is that even though Fidelity does not offer a 5304 SIMPLE IRA plan, they may be willing to set up and hold an account under the employer's 5304 plan.

Is that right?
Yes, a SIMPLE IRA custodian can open just an individual account under an existing 5304-SIMPLE IRA plan. However, in the post immediately previous to yours @wildungar2000 indicated a year ago Fidelity would not do so. On the other hand, Vangurd who like Fidelity only offers 5305-SIMPLE IRA plans, will do so.

retiredjg
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by retiredjg » Sun Sep 22, 2019 9:49 am

Thanks. In that case, maybe Vanguard is a solution.

Spirit Rider
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by Spirit Rider » Sun Sep 22, 2019 9:57 am

retiredjg wrote:
Sun Sep 22, 2019 9:49 am
Thanks. In that case, maybe Vanguard is a solution.
It appears so. EDITED

I was incorrect about Schwab, their plan document refers to a 5305. They also state this; "*Note: Schwab does not accept the 5305 or 5304 IRS Model Plan, or any other provider’s Model Plan". So they may not open accounts under another providers 5304 plan.
Last edited by Spirit Rider on Wed Sep 25, 2019 11:11 pm, edited 1 time in total.

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A_Bond
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Wed Sep 25, 2019 9:54 pm

@Spirit Rider, That explanation was very helpful. It is a lot clearer for me now, thank you!

@wildungar2000, I just got a response (finally) from Vanguard, they indeed sent me forms identical to what you just described.

I find it somewhat humorous that in a roundabout way, I am almost right back to where I started. Looking to Vanguard for the solution. I will go in this direction and will update you all once I have more info in hand.
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Wed Oct 09, 2019 12:33 pm

UPDATE - I compiled all of the info I had and sent it on to my employer. Thanks to the info I have received here and from Vanguard themselves, I was able to explain it clearly. The employer will fill out the paperwork as soon as I can get it to them!!! :D

The only last bit of clarification I really need is this. Am I correct in assuming that this is for a calendar year starting on January 1st and that the date of effect should reflect that when filling out the forms?
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retiredjg
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by retiredjg » Wed Oct 09, 2019 2:03 pm

This is good news and yes, the new plan starts in January as far as I know.

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A_Bond
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Wed Oct 09, 2019 8:56 pm

retiredjg wrote:
Wed Oct 09, 2019 2:03 pm
This is good news and yes, the new plan starts in January as far as I know.
Indeed it is! I checked the IRS website and did confirm the January 1st start date.

I can't wait to finally get this all settled. Once the dust clears, I'll probably add a condensed version of this experience to the original post. Hopefully, others can learn from this!
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by retiredjg » Thu Oct 10, 2019 7:53 am

And don't forget to transfer the money already in the EJ account over to your new one. I'd wait till things are going smoothly before doing that.

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A_Bond
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Sat Oct 12, 2019 5:40 pm

retiredjg wrote:
Thu Oct 10, 2019 7:53 am
And don't forget to transfer the money already in the EJ account over to your new one. I'd wait till things are going smoothly before doing that.
Oh, for sure! That is one of the first things I plan on doing once I get this up and running in January. Now, I just need to decide what index funds I want to jump into. (Not sure if I want to eat the $25.00 per fund fee x 3 to create a three-fund portfolio or if I just want to go into a total market or a target-date fund to save a few bucks.)
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krow36
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by krow36 » Sat Oct 12, 2019 6:10 pm

Are you a Voyager client? That requires that your and your immediate family’s Vanguard balance is over 50k.
SIMPLE IRA FEES
$25 for each Vanguard mutual fund in each account.
HOW YOU CAN AVOID THE FEE
We'll waive the fee if you're a Voyager, Voyager Select, Flagship, or Flagship Select client. https://investor.vanguard.com/investing/account-fees
It's great to see a EJ-SIMPLE IRA thread that has a successful Vanguard outcome! Congratulations! :)

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A_Bond
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Sun Oct 13, 2019 3:21 pm

krow36 wrote:
Sat Oct 12, 2019 6:10 pm
Are you a Voyager client? That requires that your and your immediate family’s Vanguard balance is over 50k.
SIMPLE IRA FEES
$25 for each Vanguard mutual fund in each account.
HOW YOU CAN AVOID THE FEE
We'll waive the fee if you're a Voyager, Voyager Select, Flagship, or Flagship Select client. https://investor.vanguard.com/investing/account-fees
It's great to see a EJ-SIMPLE IRA thread that has a successful Vanguard outcome! Congratulations! :)
I am not a Voyager client. My main accounts are actually currently with Fidelity.

Thank you! I really couldn't have worked through this without the help of this forum.
buy. hold. repeat.

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A_Bond
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Fri Oct 25, 2019 10:41 pm

Minor update. The paperwork was sent off early this week and is probably in the hands of Vanguard as I type. Now to wait...

I know this isn't a large time span, but I did find this interesting. In the few months that I have had my EJ account open, I have had a rate of return of .47%. The S&P 500 has seen a return of 3.34% during that same period of time. :annoyed I would love to have some of those 'average' returns right about now!
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A_Bond
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Thu Nov 14, 2019 11:37 pm

Another minor update. The account is setup and web access is functioning - all ready for the contributions starting in January. I can say, that Vanguard's website is not nearly as good as Fidelity's, which I much prefer. Once again, I could not have sifted through this SIMPLE IRA process without the help of this forum. Thank you all!
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krow36
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by krow36 » Fri Nov 15, 2019 12:03 am

Glad to learn that it's all set up at Vanguard! Thanks for the update. :D

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A_Bond
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Mon Dec 16, 2019 10:25 pm

Update - The switchover is finally 'official'. My first deposit showed up in my Vanguard SIMPLE account, not my EJ. I went 100% VSTAX in the SIMPLE for now. It's a good feeling!
buy. hold. repeat.

krow36
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by krow36 » Tue Dec 17, 2019 12:38 am

Great! :D

retiredjg
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by retiredjg » Tue Dec 17, 2019 8:35 am

A_Bond wrote:
Mon Dec 16, 2019 10:25 pm
Update - The switchover is finally 'official'. My first deposit showed up in my Vanguard SIMPLE account, not my EJ. I went 100% VSTAX in the SIMPLE for now. It's a good feeling!
This is good news. I'm not sure this was supposed to happen before January, but I would not rock the boat on this myself.

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A_Bond
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Tue Dec 17, 2019 6:03 pm

This is good news. I'm not sure this was supposed to happen before January, but I would not rock the boat on this myself.
Yeah, I was thinking the same thing. I think I'll just let it roll. :D

Now to dive into the EJ to Vanguard transfer!
buy. hold. repeat.

retiredjg
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by retiredjg » Tue Dec 17, 2019 6:45 pm

Not yet. Wait at least a few pay periods?

Mm8719
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by Mm8719 » Thu Jul 23, 2020 8:09 pm

A_Bond wrote:
Tue Dec 17, 2019 6:03 pm
This is good news. I'm not sure this was supposed to happen before January, but I would not rock the boat on this myself.
Yeah, I was thinking the same thing. I think I'll just let it roll. :D

Now to dive into the EJ to Vanguard transfer!

Hey @A_Bond I was looking through your thread and just had a couple quick questions. I am in the beginning stages of transferring my 5304 simple at Ed Jones. I’ve been in contact with both Fidelity and Charles Schwab and they both advised me they would allow the transfer over. I just wanted to check with you and see what led you to Vanguard over Fidelity ? Also, you mentioned that once you transfer it is not effective until the start of the next year , but that it turned out deposits began prior to then. Did you end up getting clarity on that ? I would love to go ahead and transfer without having to wait until January...

Thanks in advance

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A_Bond
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Re: SIMPLE IRA - Transfer of Funds from Edward Jones to Fidelity (Send help!)

Post by A_Bond » Tue Aug 04, 2020 7:27 pm

Hey @A_Bond I was looking through your thread and just had a couple quick questions. I am in the beginning stages of transferring my 5304 simple at Ed Jones. I’ve been in contact with both Fidelity and Charles Schwab and they both advised me they would allow the transfer over. I just wanted to check with you and see what led you to Vanguard over Fidelity ? Also, you mentioned that once you transfer it is not effective until the start of the next year , but that it turned out deposits began prior to then. Did you end up getting clarity on that ? I would love to go ahead and transfer without having to wait until January...

Thanks in advance
Mm8719, Fidelity told me that they do NOT support Form 5304 SIMPLE accounts, they support Form 5305 SIMPLE accounts. I was informed that they set up all SIMPLE IRAs as Form 5305 DFI. This is why I ended up going with Vanguard over Fidelity, simply due to the fact that they supported the type of account I had. It was a bit of a bummer, as I initially hoped to have all of these accounts under one banner. But hey, now I get to say that I am a (very) small member of the Vanguard family.

In terms of it going active, it ended up going active right away and my employer began submitting the contributions to the Vanguard SIMPLE the next month. There was a bit of confusion over that, but it all ended up going smoothly.
buy. hold. repeat.

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