No. of Recommendations: 0
orangeblood wrote:
<<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?>>

You can certainly rollover a 401(k) into a seperate rollover IRA account, called a "conduit" IRA, and later roll it back into another 401(k). That way you keep your options open.

IMPORTANT: You need to make absolutely certain that your IRA trustee can handle this. Some can't or won't handle seperate accounts for the same tax ID, and for a conduit IRA to work, it _must_ be a seperate account, once mixed with other IRAs (except perhaps other conduit IRAs), you can't continue the rollovers. For instance, a different mutual fund from all your other mutual funds - or even stronger, a different mutual fund _family_.

shess
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement