Consolidating ira accounts
Prior to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), individuals were allowed to roll over an IRA to a qualified-plan account, only if those IRA assets originated from a qualified plan and were maintained in a conduit IRA.This helped retirement account owners ensure that their qualified-plan assets retained certain tax benefits.For example, someone may open a Fidelity IRA one year and a Merrill Lynch the next, just to invest in a mutual fund available through that particular family of funds.It is also very common for an individual to allow his or her retirement funds to remain in the employer plan, such as a 401(k), 403(b), or the pension plan, after he or she leaves the company.
Rollover IRATraditional IRARollover IRARoth IRAIs there any disadvantage to combining the 2 Rollover and one Traditional IRA into 1 account?Does it matter which account I combine them into (In other words should I move the 2 Rollover IRA's into the Traditional IRA account? Trying to combine accounts so we have the necessary $ to buy Premium Class mutual funds at Fidelity. I'd choose to move to one of the Rollover IRAs because if she ever wants to roll that account to an employer plan, some plans are fussy about the source.The IRS doesn't care anymore (it used to) but some plans still only want funds rolled from former employer plans.All deductible and non-deductible traditional IRAs can be combined. You cannot consolidate funds from a Roth IRA with a traditional IRA. Consolidating your retirement accounts into a single account makes it easier to manage your asset allocation and avoid costly mistakes. Consolidation makes sense to all who want to benefit from a more simple and efficient process of managing their account.Having one account makes it easier to re-balance your holdings as the markets shift, keeps your paperwork centralized, lowers your overall fees, helps to create better service as you now have a “super-account” and makes it easier for you to calculate the required minimum distributions (RMD). It helps your loved ones to locate your savings faster. Create a list of all your retirement accounts including their current balance, their performance, their fees and the type (401K, IRA, Roth-IRA, SEP-IRA, etc). Figure out your retirement needs and goals (estate planning, cash flow, capital preservation, etc.) 3. You will have only one statement to deal with, your fees will be lower, and you will be able to allocate and/or re-balance your accounts easier, one simple calculation for your RMD.
