Keeping Contributory Roths and Conversion Roths Separate
Client converted an IRA to a Roth in the 90’s when the tax spread was over 4 years. Has since been contributing to a separate Roth over the past 20-plus years. Is there any reason these should stay in two separate accounts, or could they be combined into one Roth account. Client is currently in her 60’s if that has any bearing.
Permalink Submitted by Alan - IRA critic on Wed, 2021-11-24 19:16
There is no reason to keep the accounts separate, since all Roth accounts are treated as one combined Roth for tax purposes. Client’s Roths are also fully qualified and tax free, so there is no further Roth basis accounting needed. Only reason to keep them separate now would be if they have different beneficiaries that are not on the same page.