Mutual fund fees

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Q. I read the article related to the management fee charged by mutual fund brokers. Is this fee charged annually or monthly?
(www.federaltimes.com/article/20140310/MGMT01/303100003/The-TSP-hard-beat)

I have been investing in Fidelity in a traditional IRA account for a number of years, but lately I have had to pay taxes on the contributions because my household income has been above the threshold required to get the tax deduction. I was wondering if I could move some of the contributed funds from fidelity straight to the TSP Roth without having to pay taxes again or incur any penalties and still continue saving with Fidelity.

A. The rate for mutual fund expenses is expressed as an annual percentage, but it is charged against the account on a daily basis. As long as the money is eligible to be deposited to the TSP account — that is, it contains only pre-tax money — you may move it directly into your TSP account whenever you like.

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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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