Roth Contribution to a Roth Conversion IRA
I (age 51) converted my traditional IRA to a Roth Conversion IRA 2 years ago. I would like to make a 2016 Roth contribution before tax-filing deadline (which I am eligible to do) and have not contributed to this account yet except for the conversion. There will be no reason for me to withdraw money from this IRA within 5 years of the conversion date or before age 59 1/2.
Are there any other issues with me contributing to this Roth Conversion IRA? Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2017-04-12 16:42
You should probably contribute to the existing Roth. If you had to remove your contribution because your income was too high or you just changed your mind, the earnings calculation would be based on the gain or loss % of the entire account, which is a function of how it is invested. If you contributed to a new Roth account and wanted the contribution returned you could get back the entire account, so you could tell at a glance what the earnings or loss would be. This is not an important enough feature for most people to override the convenience of contributing to the existing account.
Permalink Submitted by [email protected] on Wed, 2017-04-12 17:01
….much appreciated.