IRA consolidation
Hello,
Client has 2 small retirement accounts: a Rollover Traditional IRA worth $6k and a Traditional IRA worth $2k.
We plan on transferring these to a new firm and consolidating them given their sizes.
Does it matter if the new IRA being consolidated into is a Rollover Trad. IRA or Trad. IRA? I assume not but just want to confirm.
Thanks.
Jason
Permalink Submitted by Alan - IRA critic on Fri, 2018-05-25 19:45
If these accounts are combined, the account will no longer be a rollover IRA. For such small amounts that probably does not matter, but if client ever wants to roll the IRA into an employer plan, some employer plans will only accept rollover IRAs and such a plan would then not accept a combined account. That comes into play if client wants to do back door Roths in the future. Again, these amounts are too small to consider any potential creditor protection issues.