Combining Roll-Over IRAs

Culture · 06-30-2008, 05:33 PM

I have two roll-over IRAS that are sourced from two different 401(k) from two different companies. Both 401(k)'s contained a combination of employee and employer contributions. Can I combine these IRAs into one large IRA? If so, is there any significant reason not to? I am trying to get vanguard admiral shares, which cannot be accomplished with separate IRAs. I would also like the simplicity of fewer accounts. Thanks for your wisdom.

kaneohe · 06-30-2008, 06:29 PM

Don't think there is any problem doing what you suggest. There is some thought that you shouldn't mix rollovers (from corp plans) w/ "normal" contributory IRAs for creditor protection purposes but that isn't what you're thinking about. Only reason I can think for not combining them is in the remote event one got compromised somehow (online fraud type), then you'd still have the other intact. May not be of any concern to you though and
you have other benefits that you have suggested.

Culture · 06-30-2008, 07:15 PM

Quote:

Originally Posted by kaneohe

There is some thought that you shouldn't mix rollovers (from corp plans) w/ "normal" contributory IRAs for creditor protection purposes but that isn't what you're thinking about.

I knew this, which is what made me worry that there might be something else I did not know about.

Thanks for the reply.

FinanceDude · 07-01-2008, 08:10 AM

I see no problems, it's done all the time. If you are in a situation where you are worried about creditors going after your IRAs, this would be the LEAST of your problems.........

clifp · 07-01-2008, 07:15 PM

I ended creating two different IRAs from 401K rollover, the opposite of what you did.
Hawaii and at least a couple of other states don't tax pensions (including employee contributions to 401K) So withdrawals on one of my IRAs is exempt from state taxes.

It maybe worth checking if any of your potential retirement locations have that provision, and separate out your contributions from your employers.

06-30-2008, 05:33 PM	#1
Culture Recycles dryer sheets Join Date: Apr 2007 Posts: 148	Combining Roll-Over IRAs I have two roll-over IRAS that are sourced from two different 401(k) from two different companies. Both 401(k)'s contained a combination of employee and employer contributions. Can I combine these IRAs into one large IRA? If so, is there any significant reason not to? I am trying to get vanguard admiral shares, which cannot be accomplished with separate IRAs. I would also like the simplicity of fewer accounts. Thanks for your wisdom.

07-01-2008, 08:10 AM	#4
FinanceDude Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Aug 2006 Posts: 6,157	I see no problems, it's done all the time. If you are in a situation where you are worried about creditors going after your IRAs, this would be the LEAST of your problems......... __________________ Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:) My American Funds can Beat Up Your Vanguard Funds........:)

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06-30-2008, 06:29 PM	#2
kaneohe Recycles dryer sheets Join Date: Jan 2006 Posts: 209	Don't think there is any problem doing what you suggest. There is some thought that you shouldn't mix rollovers (from corp plans) w/ "normal" contributory IRAs for creditor protection purposes but that isn't what you're thinking about. Only reason I can think for not combining them is in the remote event one got compromised somehow (online fraud type), then you'd still have the other intact. May not be of any concern to you though and you have other benefits that you have suggested.

07-01-2008, 07:15 PM	#5
clifp Thinks s/he gets paid by the post Join Date: Oct 2006 Posts: 1,769	I ended creating two different IRAs from 401K rollover, the opposite of what you did. Hawaii and at least a couple of other states don't tax pensions (including employee contributions to 401K) So withdrawals on one of my IRAs is exempt from state taxes. It maybe worth checking if any of your potential retirement locations have that provision, and separate out your contributions from your employers.

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