Transfer of assets from traditional IRA to a rollover IRA
I have a traditional IRA at one institution, and I would like to directly transfer the assets in that account to a Rollover IRA I have at another institution. The transfer will be direct, and will not go through me.
The question is: are there any issues with transferring the securities from a traditional IRA to a rollover IRA?
Thank you.
/Dana
Permalink Submitted by Alan - IRA critic on Sat, 2020-03-07 19:39
A rollover IRA is a traditional IRA, just differs due to source of contributions. There are two possible issues, the first being that combining the two means that the rollover IRA is not a rollover IRA anymore. In some cases that would prevent you from being able to roll it back into an employer plan (401k etc) for various tactical reasons such as better creditor protection in some states, to enable you to do back door Roth contributions if your income is too high to make regular Roth contributions, and there are a couple other possible benefits. If you aren’t concerned with these lost benefits or would not use them, then you can combine the two to simplify your accounts and record keeping.
Permalink Submitted by Dana S on Sat, 2020-03-07 22:49
Thank you!