Expert: Steve Hach - 11/11/2008

Question
AS YOU KNOW MARKET IS LOW.  I AM ROLLOVER FROM ONE TO OTHER COMPANY.  WHAT IS MONEY MARKET?  IF I PUT MY IRA MONEY INTO MONEY MARKET(LIKE SAVING ACCOUNT WITHOUT MAKE ANY INVESTMENT, IS THERE ANY PENILITY LIKE WHEN YOU CASH OUT? BASICALLY, I WANT ROLLOVER MY IRA TO MONEY MARKET WITHOUT PAY ANY FEE.

Answer
Hi Patricia,

As long as the money market fund you want to roll over into is available from your broker/bank, you should be able to move it into the money market with no penalty.

The proper person to ask this question would be at your broker/bank.

Remember that typically money market funds ARE NOT AS SAFE AS SAVINGS ACCOUNTS because they DO NOT HAVE FDIC PROTECTION.

Right now the US government has been backing some money market funds, but is general you can lose money in them if the fund "breaks the buck."

Fees are set by your broker/bank, you need to ask them this question as well.

Best,

Steve