Roth conversion ira and roth ira
I have a client that holds two roth iras at a mutual fund company. One is titled Roth conversion IRA and the other is just titled Roth IRA. Can these two accounts be combined into one Roth IRA once they are transferred to another firm or must they be kept separate? Thank you
Permalink Submitted by Alan - IRA critic on Thu, 2015-08-13 15:58
They can be combined, and for most tax purposes all Roth accounts are considered one combined account anyway. One temporary reason to keep the conversion separate is recharacterization mechanics which are simpler when the conversion is done to a new Roth account. The deadline for that is 10/15 of the year following the conversion year. After that passes, no reason not to combine them.