Combine rollover IRA’s

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airahcaz
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Combine rollover IRA’s

Post by airahcaz »

Have two rollover IRA’s from having rolled over 2 previous 401Ks (different employers). Any reason to combine vs keep separate? (Traditional, not Roth)
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David Jay
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Re: Combine rollover IRA’s

Post by David Jay »

No reason not to combine (for simplicity).

It may make sense to keep a rollover segregated from an account with contributions for reasons of ERISA protection or you want to roll the money back into a 401K or TSP.
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shess
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Re: Combine rollover IRA’s

Post by shess »

David Jay wrote: Tue Nov 05, 2019 10:01 pm No reason not to combine (for simplicity).

It may make sense to keep a rollover segregated from an account with contributions for reasons of ERISA protection or you want to roll the money back into a 401K or TSP.
These days some 401k plans allow you to roll in funds from traditional IRA accounts, but IMHO keeping your rollover account separate is probably a good just-in-case thing.
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airahcaz
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Re: Combine rollover IRA’s

Post by airahcaz »

Both accounts are rollover, no further contributions
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RickBoglehead
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Re: Combine rollover IRA’s

Post by RickBoglehead »

airahcaz wrote: Wed Nov 06, 2019 7:08 am Both accounts are rollover, no further contributions
There is no reason you cannot combine them, as has been stated.
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DivesEtPauper
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Re: Combine rollover IRA’s

Post by DivesEtPauper »

I had this same scenario. Some years back, I left a job and rolled a 401k into a traditional IRA. Some years after that, did the same thing again, so I ended up with two traditional IRA accounts, with two different companies.

Over the years there were various mergers, and I ended up with both IRAs at a single company (Invesco, I think it was), though they still treated it as two accounts. A few years after that, I transferred the whole thing to Vanguard, so I now have one traditional IRA (different funds of course). Had a little hassle due to minor name differences (missing a middle initial on the one account), but ultimately worked just fine.
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airahcaz
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Re: Combine rollover IRA’s

Post by airahcaz »

If a roll both to a 401K, I should be eligible for backdoor Roth IRA again?
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shess
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Re: Combine rollover IRA’s

Post by shess »

airahcaz wrote: Wed Nov 06, 2019 10:22 am If a roll both to a 401K, I should be eligible for backdoor Roth IRA again?
To the extent that you have no other traditional IRA funds.

My point about rolling in traditional IRA funds is that I was in a plan which allowed this, so I used that option to shift all of my pre-tax IRA funds to the 401k so I could do backdoor Roth.
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