Hi,
I have 2 IRA accounts (after tax IRA and 401K rolled over IRA). I moved them from one brokerage firm to another.
The brokerage firm mistakenly merged both accounts into the 401K rolled over IRA).
How can I undo the problem?
Thanks,
Tai
You should have opened two accounts before the transfer since the new custodian will not take responsibility for an error unless there was some special instruction they missed. While you could open another IRA account now and have the applicable amount from one of the former accounts transferred into it, once funds from a rollover IRA have been commingled with contributary IRA funds even for just one day, the damage has been done and now niether of these accounts can be considered rollover IRAs. When do you plan on rolling over to the 401k? If you are doing that now, I do not understand why you did not just roll the IRA from the first IRA custodian directly to the 401k plan instead of moving it to another IRA custodian.
Hi Alan,The new account was open by the new custodian. They did a direct transfer from my old brokerage firm.As for accounts, they merged the after-tax IRA into the (pre-tax) 401K rollover IRA.Thanks,Tai
Permalink Submitted by Alan - IRA critic on Sat, 2017-05-27 19:38
It may not be a problem, unless you plan to roll the pre tax balance into an employer plan AND that plan will not accept rollovers other than from rollover IRA accounts. DId you open two IRA accounts at the new firm?
Permalink Submitted by Tai Do on Sat, 2017-05-27 20:33
Hi Alan,Hi Alan,That was the plan. The new firm ended up open only one account instead of 2. How can I separate the two at this point? Do I just open another after tax IRA and transfer portion of the fund over?Thanks,Tai