UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Author: jmbarnes Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76397  
Subject: Too Many IRAs Date: 12/2/1998 5:47 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I currently have two Roth IRAs - a conversion & a contribution. In addition my wife has a conversion account & will soon have a contribution account. Obviously, I would have more buying power & less headaches if some of these could be bundled together (lower trading costs, convenience, etc). My question is: Does the gov't have any plans to allow the conversion/contribution money to all be in one account, or am I stuck with 4 IRAs forever?
On another note, I also have what's called a "SEP IRA" through work. If I leave my job, what are the options for taking this with me (i.e. can I roll it into one of the roths, or can it only be treated as a trad. IRA) ?

Thanks for the help

Jack
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: 6917 of 76397
Subject: Re: Too Many IRAs Date: 12/2/1998 8:53 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Jack, and welcome. You asked:

<<I currently have two Roth IRAs - a conversion & a contribution. In addition my wife has a conversion account & will soon have a contribution account. Obviously, I would have more buying power & less headaches if some of these could be bundled together (lower trading costs, convenience, etc). My question is: Does the gov't have any plans to allow the conversion/contribution money to all be in one account, or am I stuck with 4 IRAs forever?>>

Since the passage of the IRS Restructuring Act this year, there is no need to keep contributory and conversion Roth IRA separate. Providers are slowly adapting to this situation and are allowing the comingling of those funds. Thus, you and your spouse can merge your Roths into only one Roth IRA for each of you. You will then go from four accounts to two.

<<On another note, I also have what's called a "SEP IRA" through work. If I leave my job, what are the options for taking this with me (i.e. can I roll it into one of the roths, or can it only be treated as a trad. IRA) ?>>

Unlike other retirement plans, a SEP-IRA can be rolled directly into a Roth IRA. When you leave your job, then, that SEP-IRA can be transferred into a traditional or a Roth IRA at your discretion,

Regards…..Pixy



Print the post Back To Top
Author: jmbarnes Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6919 of 76397
Subject: Re: Too Many IRAs Date: 12/2/1998 9:08 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<<Unlike other retirement plans, a SEP-IRA can be rolled directly into a
Roth IRA. When you leave your job, then, that SEP-IRA can be transferred
into a traditional or a Roth IRA at your discretion>>


Pixy:
Thanks so much for the help...the one question I still have is: When I transfer the SEP IRA to a Roth, am I correct in assuming that I will be responsible for any taxes that I avoided while those funds were held in the traditional SEP IRA (i.e. would I treat this transfer the same as converting a trad. IRA to a Roth)?

Thanks again,
Jack

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: 6928 of 76397
Subject: Re: Too Many IRAs Date: 12/2/1998 4:39 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Jack writes:

<<Pixy:
Thanks so much for the help...the one question I still have is: When I transfer the SEP IRA to a Roth, am I correct in assuming that I will be responsible for any taxes that I avoided while those funds were held in the traditional SEP IRA (i.e. would I treat this transfer the same as converting a trad. IRA to a Roth)?>>


Yep. A SEP-IRA may be converted to a Roth IRA, but when it is all previously untaxed money must be taxed just as it would be in a traditional IRA conversion.

Regards….Pixy


Print the post Back To Top
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Advertisement