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Subject:  Re: Combine accounts? Date:  1/9/1998  9:09 AM
Author:  TMFPixy Number:  1144 of 78166

Greetings, Orangeblood, and welcome.

<<I have read before it is not wise to rollover a 401(k) account into an IRA.... just in case one needs to put that money back into a 401(k) in the future.
But since I am able to self direct the new combined IRA account any way I wish, what advantage would there be to keeping the funds separate?>>

First, what you heard is incorrect. It's not unwise to roll a 401K to an IRA, it's sometimes considered unwise to add any other money from any other source after the 401K has been rolled to an IRA. That's because the 401k rollover money then loses it's eligibility for a future transfer to another employer's qualified retirement plan that accepts such transfers. So by keeping the IRA "pure, you still have the ability to self-direct your account investments while preserving the right to transfer that account in its entirety to a new employer's plan (assuming it accepts old plan money) should you desire. In my mind, that's the sole advantage to keeping the money separate. To Fools, it's not a b