Keeping Rollover IRAs Separate from Contributory IRAs
Client in Texas has a number of rollover IRAs. My understanding is that there is almost no difference in protections between the types of accounts describing the source of the funds. Except, in the case where the client would like to do an IRA reverse rollover back into a 401k. The client is fully retired, and no plans to return.
Permalink Submitted by Alan - IRA critic on Tue, 2024-11-12 18:16
Texas provides creditor protection for all IRAs with no dollar limit, so if client does not plan to move to a state that provides inferior protection and will not be returning to work, there is no reason not to combine these IRAs by direct transfers into a single IRA.