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URL:  http://boards.fool.com/just-a-quick-recap-i-had-originally-asked-pixy-10345746.aspx

Subject:  Re: Roth Contributions Date:  9/30/1998  12:57 PM
Author:  GeekFoolBoy Number:  5742 of 76079

Just a quick recap: I had originally asked Pixy about making additional contributions to a Roth IRA which I had opened this year as a conversion from a regular IRA. Much to my delight, I found out that it is possible to make addional contributions to this account this year. Trouble began, however, when my account holder (Fidelity) informed me that they would not allow additional contributions to a conversion Roth, but instead, I must open a new Roth account (a contributory Roth) to accept the contributions.

I was not pleased.

The primary issue I have with this is that it will cost more to make trades with an investment approach like the Foolish Four b/c the stocks will be held in two accounts. There are some creative things I can do to minimize the impact, but the point remains that I shouldn't have to.

After going back and forth with a few e-mail messages, this is the final word I have received from Fidelity:

<<You raised some very valid points about the trading costs associated with maintaining both Roth IRA registrations. As mentioned in our earlier message, we have forwarded the details of your message to our development department and are currently reviewing our recordkeeping systems to determine if we can accommodate our customers' requests to combine the two Roth IRA registrations. At this time, we do not have additional details of when any changes would take effect, although we do anticipate making some changes
after the first of next year.>>

So, at this point they won't do anything, but the door is open for them to straighten out the mess at a later date. Hopefully, they will see the error of their ways.

I've posted this as a FYI for anyone who may be considering a conversion to a Roth from a traditional IRA. Had I known Fidelity would not allow additional contributions to the account before I made the conversion, I would have gone with a different broker.

It's those darned unasked questions that get you every time. ;-)

-GeekFoolBoy
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