Author Topic: Consolidation & New Traditional IRAs  (Read 1505 times)

Unique User

  • Pencil Stache
  • ****
  • Posts: 650
  • Location: NC
Consolidation & New Traditional IRAs
« on: February 23, 2014, 10:54:40 AM »
Just realized that due to maxing out our 401ks and HSA along with some rental real estate losses, our AGI is low enough to qualify for a Traditional IRA.  Problem is we don't have Traditional IRAs and would have to open them.  I'm worried about too many accounts since we each have a 401k and we each have a Roth IRA.  Spouse's 401k and Roth are with Fidelity, so no brainer there to open his in Fidelity as would be easy to track.  For me, I have a 401k with ING, Roth with Fidelity and old SEP IRA with Vanguard.  Seems like it would make sense to open a Traditional IRA with Fidelity and roll my old SEP IRA into it so that we have three accounts each.  Since our Roth accounts are high and 401k are low, seems like a Traditional IRA makes the most sense this year.  Is there a better way to do this?  Am I missing something?

wtjbatman

  • Handlebar Stache
  • *****
  • Posts: 1313
  • Age: 36
  • Location: Missouri
Re: Consolidation & New Traditional IRAs
« Reply #1 on: February 23, 2014, 01:52:24 PM »
I feel like you answered your own question by the end of your post. What else are you looking for? Reassurance? Yes, your plan sounds fine. Personally I wouldn't worry about keeping your investment accounts down to some arbitrary number like 3 each, but since you already described how that would work, go for it. It does sound like you may have problems funding that TIRA in the future, so keep in mind the balance may remain (relatively) low if you don't contribute to it every year. I get the impression that frustrates some people.

Unique User

  • Pencil Stache
  • ****
  • Posts: 650
  • Location: NC
Re: Consolidation & New Traditional IRAs
« Reply #2 on: February 24, 2014, 11:01:42 AM »
Thanks, having multiple accounts was what concerned me, but I really have no valid reason why, just seemed like too many.

matchewed

  • Magnum Stache
  • ******
  • Posts: 4334
  • Location: CT
Re: Consolidation & New Traditional IRAs
« Reply #3 on: February 24, 2014, 11:12:03 AM »
Whatever consolidation makes it so you don't lose track will be best for your situation. :)

Vjklander

  • 5 O'Clock Shadow
  • *
  • Posts: 50
Re: Consolidation & New Traditional IRAs
« Reply #4 on: February 24, 2014, 11:21:22 AM »
Are your employers still contributing to the 401Ks? If so, you should be able to roll some over into an IRA - read the fine print. If not, you can roll over all of it and combine with your T-IRA.  If your marginal tax rate is low enough, it might make sense to roll everything over to your Roths.