Separate QRP rollover IRA

Hi1

Can I continue to make contributions to my rollover IRA. If yes, can I comingle before-tax and after-tax contribution with the QRP rollover IRA?

Thanks!

Gloria



Yes, you can contribute to it without any impact whatsoever with respect to taxes. This applies whether the contribution is deductible or not.

However, for purposes of asset protection under the Bankruptcy Act, it may better to keep the rollover separate from other IRAs. If you ever expect the value of all your IRAs to exceed $1,000,000, then it is best to keep the rollover separate because the rollover accounts do not have a limit. If you contribute to it, then you may invoke the limit or at least have to justify how much of the account should be subject to the limit including earnings. Most states provide unlimited protection on their own, but even if you live in one of those, you could move to one that does not, like CA. If you will never have $1mm combined, then do not worry about adding to the rollover account.

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