I have two rollover IRA accounts in two different discount brokerage
firms. I want to close one of them after transfering its fund to the
second account to reduce the paper trail. Is this possible? and if so,
is there any implication?
Thanks.

A. Dallas wrote:
- quote -

AD,
For what you described - two Rollover IRAs at different firms - it
should be as easy as submitting an Account Transfer form to the
brokerage firm you're going to stick with. That form + a copy of a
recent statement is all the firm needs to transfer the assets over.

Done this way there won't be any taxes. You may be charged some kind of
account-termination fee (say $50, $75) - you'll need to check the firm's
policy. Also, you probably want to close out the second account after
the assets transfer so you don't get hit with "low balance" fees. Not
that they're necessarily collectable but some firms do send you
statements showing a fee assessed to an empty account. And I've seen
some variation from one firm to the next...some automatically close out
an account after you've done an account transfer out, others leave it
open. With the latter you may need to mail a quick letter (after the
assets are out) requesting that it be closed.

-Tad