Merging Contributory IRA and SEP IRA
Where can I find a reference to any disadvantages (Pension Protection Act creditor protection, etc) of merging a Contributory IRA with a SEP IRA? Client is retired and no longer funding either account. I am considering consolidating simply for investment management convenience. Client is a resident of state of Ohio. Thanks.
Permalink Submitted by Alan Spross on Fri, 2008-08-15 03:43
You will probably need to consult an Ohio legal firm on this one.
Ohio provides minimal creditor protection on a state level, none for SEP IRAs, and in addition has opted out of the federal bankruptcy provisions. While some of those provisions remain valid, the Ohio statutes will indicate which ones still exist.
If neither type of plan is subject to superior asset protection, then there is no reason not to combine them. That may be the case here.
Other than asset protection, there is no other reason not to combine them.