Are all of the following allowed, and if so, are there any negative tax consequences?1) Contributions of new money ($2,000/yr.) to an existing rollover IRA2) Consolidating rollover IRA's by transferring the contents of an existing rollover IRA into another existing rolllover, both of which had assets prior to the transfer.3) transferring the contents of an existing non-rollover IRA into an existing rollover IRA that already had assets4) transferring the contents of an existing rollover IRA into an existing non-rolllover IRA5) combining two existing non-rollover IRA's
By combining rollover IRA funds with contributions or IRA accounts containing contributions your only loss is the priviledge of moving your IRA funds to a future employers 401K plan. Because most IRAs are much more flexible than 401Ks most people do not find this advantageous, so its a small loss.Two advantages of 401K to keep in mind: if you leave the employer after age 55, you can begin penalty free distributions from the 401K immediately rather than having to wait until age 59-1/2. (Of course you could also set up an SEPP payout plan from the IRA to accomplish the same thing. Secondly, the 401K can be subsidized by the employer making it lower cost than the IRA.Otherwise, you may combine your IRA without incurring penalties provided you do it correctly. Best is to arrange direct custodian to custodian transfers. This avoids problems with withholding taxes and potential penatlies on them.
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