Separate ROTH Accounts
Fidelity has opened several Roth IRA accounts for a mutual client. He will turn age 60 in late December of 2025.
I plan to suggest to client to consolidate the ROTH IRA accounts with me of course. Is there any reason why he should keep the accounts separate? There is no need for a 5 year count any more is there?
Permalink Submitted by Alan - IRA critic on Wed, 2025-09-17 14:32
There were never tax related reasons for separate Roth IRA accounts, whether the Roth is qualified or not yet qualified. If the first Roth contribution for this client was prior to 2021, all Roth accounts are now qualified. Client should retain the Form 5498 for the year of the first Roth contribution, since the 5 year holding period starts that year.
While there are no tax related reasons for separate Roth accounts, a taxpayer may want to name a different beneficiary on each account, or access investment options only available at certain custodians, such as self directed IRA custodians.