Reusing empty ROTH IRA accounts
My 2015 ROTH conversion account is now empty because I have moved by internal transfer, all the contents into my main ROTH. Could I use this empty account for a 2016 or a 2017 Roth conversion, or is it best to create a new account because of the 1099R and 5498 reporting? Thank you
Permalink Submitted by Alan - IRA critic on Tue, 2016-11-01 17:22
You can re use the empty Roth. Even if you did an earlier 2016 conversion into this account before transferring the money to the other Roth, the 5498 reporting the conversion would not have any affect on a later conversion you would do this year. If you recharacterize a conversion, the earnings calc is only done for the period the particular conversion is in the account.