Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I have just subscribed to the Motley Fool Pro service and want to set up a new account at my broker (Fidelity) dedicated exclusively to my Pro investment activities, and fund this account with assets transferred from two other Fido accounts: a traditional IRA and an SEP-IRA. But when I talked to a Fido rep about setting up the new account he said I probably shouldn't commingle the trad IRA and SEP-IRA assets because they are treated differently for tax purposes and suggested I set up two separate new accounts to keep the funds segregated. My question is simply is that really necessary? My admittedly very tenuous grasp of the tax issues suggests not, and I'd rather avoid the complication of having the funds in two accounts when one would do.

By way of background, I am 65 years old and semi-retired. I still earn a fair amount of part time self employment income, but I haven't contributed to either the traditional IRA or the SEP-IRA in several years and don't foresee doing so in the future. I have taken a couple of smallish distributions from those accounts in recent years to cover medical and other unexpected expenses, but I mostly try to keep my hands off those assets so they can continue to grow.

Thanks in advance for any info and/or advice....
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.