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Can a Regular Ira and Rollover Ira Be Merged

Can i consolidate my traditional IRA with my spouse?

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Dear Liz,
Is there a way to transfer a traditional IRA into a spouse's IRA to consolidate the funds for easier self-management and reduced fees?
— Patrick

Dear Patrick,
Retirement accounts are like credit scores. Each person has his or her own, and they can't be merged afterwards marriage. (Spouses can inherit retirement accounts, of form, but that's not what you lot're asking.)

Consolidating to 1 investment firm still can make sense. Not just will information technology be easier to manage and coordinate your investments, just some firms lower or waive fees based on how much a household has invested with them. For example, Vanguard waives its $xx annual fee for accounts with less than $ten,000 when a household has total assets with the firm of $50,000 or more.

People who take more than than ane IRA should at least consider consolidating to brand the investments easier to manage. Consolidating into one business relationship is possible as long equally the accounts are the same type of IRA.

At that place are two basic types: IRAs that are tax-free in retirement (Roths) and those that aren't (such as traditional IRAs, SEP IRAs and rollover IRAs). Yous can combine a SEP IRA with a traditional or rollover IRA, for instance, merely you can't simply combine a traditional IRA with a Roth. Y'all tin convert a traditional IRA or a 401(grand) to a Roth, merely yous'll owe income tax on the conversion, so talk to a tax pro first.

You also can roll over old 401(k) and other qualified workplace retirement plans into a traditional IRA. Many people opt to do and then to make managing their retirement accounts easier. But in that location are some disadvantages to these rollovers as well.

Advantages of hanging on to your workplace retirement plan:

  • Investors in many 401(chiliad) plans have admission to institutional funds that are cheaper than any equivalents available to retail, or individual, IRA investors.
  • Coin in a 401(k) is protected from creditors, while the protection for IRAs may exist limited to $1 million.
  • IRAs require you to start distributions after historic period lxx 1/2, but 401(k) plans do non if you lot continue working past that age.
  • After you terminate employment at age 55 or older, it tin can be easier to accept penalization-gratuitous distributions from a 401(k) in any amount (if the plan allows).

If whatever of those bug could exist relevant to your situation, you might exist improve off keeping your 401(thou) business relationship where it is.

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