Multiple Roth conversion throughout the year and “separate” accounts
If I want to convert $100k into a Roth this year, I know I can open up multiple roth conversion IRA’s and then “cherry pick” as long as I keep them in separate accounts. The question I have is do these separate accounts have to contain different investment/asset classes and can I do this through the year?.
As an example, assume I convert $100k into a Vanguard total bond index and $100k into the Vanguard total stock market index on January 1. In late December of that same year, both accounts are down 10% to $90k each. In this case, on December 31st, I decide to convert another $100k into a new account with a 50/50 mixture of the Vanguard total bond and total stock index.
Can I then recharacterize both accounts from Jan 1st and maintain the $100k I converted on 12/31? Is this possible under the roth rules?
Permalink Submitted by Alan - IRA critic on Fri, 2017-03-24 23:15
Yes, that is possible. You can fully or partially recharacterize each separate Roth conversion whether you convert into different accounts or not. However, if you are cherry picking it only makes sense to convert into separate accounts.