UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Author: ataloss Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75615  
Subject: Contributory IRA + Rollover IRA Date: 1/19/1999 3:38 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have both a contribtory (pre-roth) IRA and a rollover IRA (funded from a former employer's plan.)At the time I understood that the rationale for this was that at some future time I might want to move frunds from the rollover IRA to a new employer's program. The future is here. I don't want to do that and can't forsee ever doing it. I want to reduce the number of statements I get This has become a real annoyance. Is there any harm in consolidating the accounts? I am sure that this has been asked and answered many times in the past but I didn't notice the answer in the 13 steps and a search was non-productive.
Print the post Back To Top
Author: gp703 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7913 of 75615
Subject: Re: Contributory IRA + Rollover IRA Date: 1/19/1999 4:16 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
ataloss,

You can combine them by transferring the balance from one to the other. However, there are cases where you might want to transfer the money to a companies 401(k) plan, so never say never.

GP

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7922 of 75615
Subject: Re: Contributory IRA + Rollover IRA Date: 1/19/1999 5:37 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Ataloss asks:

<<I have both a contribtory (pre-roth) IRA and a rollover IRA (funded from a former employer's plan.)At the time I understood that the rationale for this was that at some future time I might want to move frunds from the rollover IRA to a new employer's program. The future is here. I don't want to do that and can't forsee ever doing it. I want to reduce the number of statements I get This has become a real annoyance. Is there any harm in consolidating the accounts? I am sure that this has been asked and answered many times in the past but I didn't notice the answer in the 13 steps and a search was non-productive.>>

As long as you are positive that at no time in the future will you want to move the rollover ("conduit") IRA money to a new employer's plan that accepts rollover money from an old employer's plan, then there is no reason to keep the accounts separate any longer. However, remember that once you merge those accounts, you have then "tainted" the rollover money and it is forevermore barred from transfer to a new employer's plan. Therefore, be sure that's what you want before you consolidate them.

Regards....Pixy

Print the post Back To Top
Author: ataloss Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7930 of 75615
Subject: Re: Contributory IRA + Rollover IRA Date: 1/20/1999 3:15 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<<You can combine them by transferring the balance from one to the other. However, there are cases where you might want to transfer the money to a companies 401(k) plan, so never say never. >>

I am trying to pare down my statements although really I can live with having separate accounts. I don't forsee changing employment but I have a hard time imagining what would be attractive about a 401k (unless I got matching money for the transfer- which I doubt.) Really the best mutual fund in a 401k seems to be an index fund (currently beating 90% of all funds.) If you can help me imagine some reason that a 401k transfer would be attractive, I would appreciate it.

Print the post Back To Top
Author: IndecisiveFool Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7932 of 75615
Subject: Re: Contributory IRA + Rollover IRA Date: 1/20/1999 3:41 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
If you can help me imagine some reason that a 401k transfer would be attractive, I would appreciate it.

To have the ability to take out a loan against it.

Of course, you asked for some reason, not a good reason. And attractiveness is in the eye of the beholder.

I would prefer a self-directed IRA.

..IF

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7934 of 75615
Subject: Re: Contributory IRA + Rollover IRA Date: 1/20/1999 5:10 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
IF, in response to Ataloss, sez:

<<If you can help me imagine some reason that a 401k transfer would be attractive, I would appreciate it.>>

To have the ability to take out a loan against it.

Of course, you asked for some reason, not a good reason. And attractiveness is in the eye of the beholder.

I would prefer a self-directed IRA.


To which Pixy adds:

And that's only if the new plan permits loans. Surprisingly, only a little over half do.

Regards....Pixy

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Advertisement