<<Cgiorgi wrote>>2. Once you roll that money into a Roth IRA Rollover account, you cannot contribute to that rollover account. If you wish to contribute to a Roth IRA, you must then open up a Roth IRA Contribution account. In other words, let's say that you want to invest your Roth IRA in fund X (if you want to invest in funds), and that you also want to contribute to fund X because you think it is a good fund. Then you will have a Roth IRA Rollover account with fund X (one account number) and have a Roth IRA Contribution account with fund X (one account number).<<my comment>>There is no legal requirement to keep rollover contributions and non-rollover contributions in separate Roth IRAs. The IRS *suggested* that IRA owners may want to do this so they will have greater flexibility to make early withdrawals without paying penalties. And some brokerage houses apparently feel that this suggestion should be taken as a directive, perhaps feeling that they could be held liable if someone combined the two kinds of contributions in one account without fully understanding the issue. I can understand this concern, but I think it's unfair if the brokerage house charges a fee for a separate IRA, given that the law is absolutely clear that the separate IRA is not legally required.KAT in Chicagolandwww.fairmark.comTax Guide for InvestorsNow with expanded and revised Roth IRA information
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