Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Well, then the retirement specialist said I should find out more about this, and maybe, It is allowable to move part of my Rollover into the Traditional IRA, splitting them that way for each daughter, thereby leaving two individual, but different types of IRAs. But he was not sure about this and said the IRA rules keep changing. Maybe I got him on a bad day.

Or maybe he doesn't know his butt from second base.

I'm going to assume that neither of these accounts is currently involved in a SEPP. (If you don't know what the acronym means, you don't need to worry about it.)

I'm going to suggest different terminology in the hope that it will help clarify things for you. You have one Individual Retirement Arrangement (IRA). It includes both your "rollover" account and your other account, plus any other traditional IRA accounts you may have elsewhere.

With respect to your "rollover" account, the issue is whether it is a "conduit" account. A conduit account is one which contains only funds rolled over from a qualified retirement plan (and earnings on them). Its special feature is that it can be rolled into a future employer's plan, if that plan allows. To retain its conduit nature it must remain free of any other funds, e.g. contributions. If the conduit designation is not important to you or the rollover is just IRA money that came from another IRA, there is no difference between the two accounts in question, in terms of what you can do with them.

Now, back to your question. You can split your IRA into as many different accounts as you want to. All you really need to do in this case is transfer what you want from the rollover to the other account. If Fidelity can't accommodate you, you can take your business elsewhere. I suspect when you find someone at Fidelity who knows what (s)he's doing, you'll be fine.

Phil Marti
Print the post  


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.