Moving a Converted Roth Account to a Roth Account
I have had a Roth IRA account for many years. I am over age 59.5. In 2010, I converted a portion of my Traditional IRA to a Roth IRA account. I set up a separate Converted Roth IRA account to accept the converted securities. This was done in case I subsequently decided to undo the conversion and this would simplify the process. I am now 100% sure that I will not undo the conversion. I wish to move both the Converted Roth IRA and the Roth IRA accounts to a different broker. My current broker is going to charge me $95 per account to transfer out. I would like to move the securities in the Converted Roth IRA Account into the Roth IRA Account so that there will only be one account to transfer out and one $95 transfer out fee to pay. Is there any reason that I cannot or should not do this?
Permalink Submitted by Alan Spross on Fri, 2010-09-10 04:34
No reason why you cannot do that.
Note that if the market tanks and 6 or 12 months from now you change your mind about recharacterization, you can still recharacterize, it’s just that the earnings calculation will be a hassle not only due to the commingling, but also due to the change of custodians. The new custodian might accept your figure for the period prior to the transfer if you wish to take that on – or might not.