AboutDavid M Iannopollo Expertise I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances.
Experience I have over 20 years experience in the business and financial world.
Question Two weeks ago the financial institution holding my Ira rollovers called and suggested that I combine 2 roll over accounts into an existing Roth Ira account. I told them that I had been advised in case of litigation that the only one that could touch an IRA rollover was the IRS. They told me that was incorrect and that the funds were "safe" (in case a legal matter may come up). I have given this a lot of thought and am very concerned about their advice. I have searched the Internet to try and distinguish the difference between a Roth IRA, IRA and IRA rollover and have been unsuccessful. I feel that I made a mistake by going along with their advice. Any comment concerning the differences would be appreciated. Thank you.
Answer Hi Nancy,
There really is no difference between a Roth IRA, and IRA and an IRA rollover as far as what these accounts are protected from except that contributory IRA's and Roth IRA's offer bankruptcy protection up to $1mil while a rollover IRA offers bankruptcy protection beyond that point. Of course, the IRS can pretty much do what they want.
