There are two ways to merge one traditional IRA into another:60 day rollover rule.This is the more complicated of the two methods, and generally not recommended.
Of greater consideration perhaps, is whether or not you even should merge 401(k) accounts.
While it may be more convenient to merge prior 401(k) accounts with your current employer plan, it’s not always the best strategy.
Whatever the reason, it’s easy to reach a point where you have three or four IRAs, all sitting with different trustees.
Eventually, you come to a place where you want to merge them all into a single IRA.
This is especially true when you are merging like-kind retirement plans.
Just as is the case with employer-sponsored retirement plans, it’s pretty easy to reach the point you have more than one IRA account.If you do have multiple Roth IRA accounts and want to merge them, the rules are similar to what they are for merging traditional IRA accounts.And it’s worth repeating; Once again, merging 401(k) accounts is handled in the same way that you would with traditional IRAs.In many cases, the trustee of the old account will withhold 20% of the distribution from the plan to cover income taxes.While this could be an excellent cover in the event that you don’t complete the rollover within the required 60 days, it comes with a set of complications all its own.It often happens as a result of job changes; you leave one job and roll an old 401(k) plan into an IRA.