Roth conversions and contributions.
My client is going to convert his ira to a roth and invest in 3 different mutual funds with different account numbers in case he decides to recharaterize later. he also is eligible to contribute to a Roth. Do you see any issue making contributions into the converted Roth or should he make contributions into yet a different Roth IRA?
Permalink Submitted by Alan - IRA critic on Wed, 2016-03-02 20:50
If client is undertaking a selective conversion strategy he already is going to get a bunch of 1099R and 5498 forms and will have explanatory statements on his return. So might as well make the contributary account a separate Roth account as well so he can tell the investment results of each conversion at a glance without having to do an earnings calculation on one of them.