Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Traditional IRA Question
Old 06-12-2007, 06:50 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
Traditional IRA Question

Once you are past 59 1/2 is there any reason not to consolidate all traditional IRAs into one?

I have one fairly large one, and a much smaller one. It seems that it might be easier to manage if it were all together.

Ha
__________________

__________________
haha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-12-2007, 07:44 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
I did that before 59.5. For the same reasons, a large one and two small ones. Now one Target Retirement type fund.
__________________

__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Old 06-12-2007, 07:50 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Feb 2006
Posts: 1,183
There are a couple of reasons...
Bankruptcy creditor protection limit (rule of thumb) is 1M per account.
Also, nice to have a smaller one as a safety net if the big boy gets beat up too much by the markets. Just a way of keeping a rainy day fund so to speak.
__________________
crazy connie is offline   Reply With Quote
Old 06-12-2007, 07:51 PM   #4
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Can't see any reason why you wouldn't consolidating. Sure makes the book work and monitoring alot easier.

The trick is to find one IRA company that combines all your asset allocations with competitive performance and expenses. I chose vanguard, but will keep my REITs in TIAA-CREF (just a token part of my assets).
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 06-12-2007, 07:58 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
Both of mine are at Fidelity in brokerage accounts. At present they are largely invested in short term govts and TIPS, plus a few index puts. When I might consider a mutual fund, I tend to use ETFs

Ha
__________________
haha is offline   Reply With Quote
Old 06-12-2007, 09:14 PM   #6
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Quote:
Originally Posted by haha View Post
Once you are past 59 1/2 is there any reason not to consolidate all traditional IRAs into one?
I have one fairly large one, and a much smaller one. It seems that it might be easier to manage if it were all together.
I don't know, but Ed Slott might have written about it in one of his books. You might also want to post your question on his discussion board, where several published CPAs make it their life's mission to give detailed answers to questions like that.

It's possible for IRAs to have a cost basis from non-deductible contributions or 401(k) after-tax contributions. IIRC when you combine the two you'll have to keep track of the cost basis, which might complicate paperwork or tracking.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 06-13-2007, 08:15 AM   #7
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Bankruptcy protection isn't one million per account, it is total for all IRA accounts in your name. And including both traditional and Roth accounts.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 06-13-2007, 11:54 AM   #8
Recycles dryer sheets
 
Join Date: May 2007
Posts: 107
Quote:
Originally Posted by Nords View Post
I don't know, but Ed Slott might have written about it in one of his books. You might also want to post your question on his discussion board, where several published CPAs make it their life's mission to give detailed answers to questions like that.
I like the IRA Help Forum also !

I have used it a few times and gotten very good quality replies.

I also like Ed Slott's book The Retirement Time Bomb ... and How to Defuse It ! Well worth the money !
__________________
theoldwizard is offline   Reply With Quote
Old 06-13-2007, 12:26 PM   #9
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Quote:
Originally Posted by Martha View Post
Bankruptcy protection isn't one million per account, it is total for all IRA accounts in your name. And including both traditional and Roth accounts.
In some states, Rollover IRA's (from 401k's etc.) have unlimited bankruptcy protection. So based on that you may not want to combine rollover IRA's with other IRA's.
__________________
MasterBlaster is offline   Reply With Quote
Old 06-13-2007, 12:31 PM   #10
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
MasterBlaster, you are absolutely right. I simply forgot. It is a matter of federal bankruptcy law that rollover IRAs from qualified plans like 401ks have unlimited bankruptcy protection. Sorry for the ommission.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 06-13-2007, 09:31 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
I appreciate all these comments. Thanks!

Ha
__________________
haha is offline   Reply With Quote
Old 06-14-2007, 05:59 AM   #12
Thinks s/he gets paid by the post
teejayevans's Avatar
 
Join Date: Sep 2006
Posts: 1,222
Quote:
Originally Posted by Martha View Post
MasterBlaster, you are absolutely right. I simply forgot. It is a matter of federal bankruptcy law that rollover IRAs from qualified plans like 401ks have unlimited bankruptcy protection. Sorry for the ommission.
Is it just bankruptcy protection, or protection from lawsuits in general?
TJ
__________________
teejayevans is offline   Reply With Quote
Old 06-14-2007, 01:39 PM   #13
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
It is just bankruptcy protection. If you don't file bankruptcy then state law governs the extent money in an IRA is exempt from creditors. States are all over the board on how they deal with IRAs. Some have unlimited exemptions. Some limit it by a certain dollar amount. Others provide that money in IRAs are exempt to the extent reasonable necessary for a debtor's support.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 06-14-2007, 01:47 PM   #14
Thinks s/he gets paid by the post
teejayevans's Avatar
 
Join Date: Sep 2006
Posts: 1,222
Quote:
Originally Posted by Martha View Post
It is just bankruptcy protection. If you don't file bankruptcy then state law governs the extent money in an IRA is exempt from creditors. States are all over the board on how they deal with IRAs. Some have unlimited exemptions. Some limit it by a certain dollar amount. Others provide that money in IRAs are exempt to the extent reasonable necessary for a debtor's support.
So, if sued, a prudent person might want to file for Chapter 11, thereby
protecting their assets in ERISA governed accounts.
TJ
__________________
teejayevans is offline   Reply With Quote
Old 06-14-2007, 02:10 PM   #15
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Chapter 7 or 13 would be what you would want to file. Chapter 11 is primarily for businesses.
__________________

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Reply

Tags
ira


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Converting Traditional IRA to Roth IRA piranha Young Dreamers 4 04-14-2007 08:39 AM
Traditional IRA to Roth Conversion Question Dog FIRE and Money 5 03-10-2007 10:53 PM
SEP IRA, WHAT ARE DIFFERENCES FROM TRADITIONAL IRA? fire2china FIRE and Money 1 02-05-2007 08:38 PM
Help! SEP IRA was transferred into a Traditional IRA...bad? soupcxan FIRE and Money 5 12-19-2006 12:19 PM
IRA Question vallieone FIRE and Money 9 11-19-2003 10:43 AM

 

 
All times are GMT -6. The time now is 09:18 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.