How Many Rollover Accounts

[nwsteve]

In an effort to simplify our holdings, I am considering consolidating IRA rollover accounts. DW and I both have two separate R/O accounts. For me, there is some after tax money in the oldest of the R/O accounts.
Fido rep says there is no real technical advantage to keep R/O separate once they are rollover (vs 401k). She did say if one was still at former employer as a 401k there might be some benefit from legal claims but not so once it is a rollover.
Consolidating the two R/O would allow me to have a much better awareness of our positions and would reduce the number of issues to view (like positions would be consolidated into one position for the one remaining R/O we each have). It is my intent to cut the number of positions (over 20) into no more than 10 each and possibly less.
While DW has interest in financial matters, interest in multiple position is not something she desires to be involved.
Comments/thoughts, please

 

[Katiek]

I'm somewhat mixed on the issue. I generally like to consolidate accounts so I don't have small ones hanging out, but I also like to have my money split between at least two different institutions. So if I had other investments at one organization, I might combine R/O accounts but at a different place.

 

[Senator]

If you are going to convert any of the IRAs to a Roth, and they have after tax money in them, do it before you do the rollover.

Your after tax basis will be higher as a percentage and you will save on taxes.

 

[jazz4cash]

Yes, consolidation makes things easier, but tracking 2 x two accounts should not be that hard. The only advantage I can think of for an individual to have more than one is to get access to a specific investment. We have six rollover accounts and three 401k's that are pretty easy to track with Fido's Guided Portfolio Summary. This way I can use rollover accounts to buy CD's at the credit union to boost my fixed income return.

 

[pb4uski]

I would combine them. All mine are in one tIRA. In fact the tIRA held my deductible contributions and rollover of pre-tax 401ks from previous employers and when I left my last employer I just rolled it into that same tIRA, so I've never had multiple rollover accounts.

 

[Animorph]

I use two IRA's, both at the same place and basically interchangeable. I basically Roth convert out of one and recharacterize into the other. With two accounts I can let the recharacterizations sit for the required time delays in one account while still Roth converting from the other.

I have typically been Roth converting 15 or so times each year, mostly one fund per partial conversion, into its own separate Roth account. I try to convert at low share prices. At tax time I recharacterize the conversions where share prices have fallen and can therefore be converted more cheaply in the future. And of course to reduce the total tax burden to the desired target. The two tIRA's make all of that a little easier.