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Subject:  Re: Commingling Conversion and Contribution for Date:  1/27/2000  8:24 AM
Author:  TMFPixy Number:  18305 of 88096

Greetings, Pavalos, and welcome. You asked:

<<I read some posts back from 1998 discussing that some online discount brokerages did not allow contributing to a conversion Roth IRA account. I have a conversion Roth IRA and a contributing Roth IRA account with my "full-price" broker right now. I'd like to take control of my investments, and transfer these accounts to a discount brokerage. I'm curious if I can just make a new Roth IRA account with the new brokerage, and transfer both existing accounts into the new account.

1. Is this possible?

2. If possible, are there any brokerages that do not allow this?>>

Original guidance from the IRS called for these accounts to be separate; however, that guidance was later changed based on Congressional action mandating how Roth IRA withdrawals would be treated. You may now keep conversion money and annual contributions in the same IRA should you desire to do so. Some agencies, though, do not allow that with accounts they administer. There are not many who do, but some still exist. Therefore, you will have to ask your provider if you will be allowed by that agency to commingle your conversion and contribution amounts.


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