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Author: DoubtinTom Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121329  
Subject: Re: Combining IRAs Date: 1/19/1999 5:27 PM
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Roy,

First I asked:
[[I moved my rollover and SEP IRAs to a brokerage so I could self-manage and do some Foolish investing. Having two accounts is awkward. The brokerage tells me it is OK to combine the accounts as long as I never plan to move them back into an employer's 401(k)plan, something I can't figure out a reason I'd ever want to do. But I have heard here and there that I could have problems due to this co-mingling of funds. Any pointers or sources to consult before I consolidate?]]

Then you explained that the co-mingling was OK, given that I don't expect to want to get my money back into any employer plan. They, like the mutual funds they contain, seem only have costs, not benefits. New 401(k) money, if matched, is different. I'd rather work with my own establised savings.

Then I asked:

[[One further question. Would there be any benefit to consolidating into either the rollover or the SEP, instead of the other? For instance, supposing I become self-employed again, might the SEP be more useful?]]

Then you said:
[[Sorry, but you lost me on this one. Please remember that I respond to so many posts, that from time to time I forget the original premise. (Also, remember that
I'm getting older).

So I'm a little confused about your first sentence. You really can't "consolidate" into a SEP account. Even thought a SEP is similar to an IRA, they are not the same. Kinda like a duck and a goose.

So if you are considering taking your prior funds back into a future employer plan, it would be best to keep it separate in a separate IRA rollover account. But, as you know, the SEP will never be allowed to be rolled into a future employer plan. So a regular rollover IRA is your best bet there.

If I'm missing the point of your question, please restate your question, perhaps with an example, and I'll give it another pass.]]

I totally understand. I'm getting older too, for that matter. Please excusing me for assuming you'd remember the context.

If I follow your logic, it seems that I can't move the IRA Rollover funds into the SEP, whether I want to move them out into an employer plan or not. Is that right? You see, I have a SEP and a rollover account at the brokerage, and what I'm trying to determine is which account to combine into. If there is a choice, I'd like to understand it before doing it.

I'm very grateful for your help and patience.

Doubtin Tom
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