Background:One & only one self-directed IRA with broker.Contributed $6000 total.$2000 for tax year 1994 fully deductible,$0 for tax year 1995 (oops, young & dumb),$2000 for tax year 1996 non-deductible,$2000 in 1997 non-deductible.(Basis = $4000, Current IRA value approx. $16800.)Will convert to ROTH IRA in tax year 2000, especially to avoid potential problems if I get a big 401k to IRA rollover by switching jobs this year (Saw in posting on FAQ board.)Will pay taxes on extra $16800-4000 = $12,800 for tax year 2000.This will all be possible because we will definitely make less than $100k this year and will be married filing jointly. Incidentally, in 1998 we didn't qualify for conversion and in 1999 we weren't sure if we would qualify and waited too long, so we're now here in 2000 and I'm doing my conversion and will pay all those taxes on gains and deductible contributions in one fell swoop next year. (Ouch)One & only one sef-directed ROTH IRA with broker. Contributed $4000 total.$2000 for tax year 1998,$2000 for tax year 1999.Age 27. Do not plan on touching/needing to withdraw before 5yr time frame for ROTH IRA's. Freedom from taxes date = Jan. 1, 2003. Then we only need to grow to 59-1/2 yrs old or have higher education expenses or medical hardships that qualify for tax-free withdrawals.Would like to "rollover" or "distribute" IRA into existing ROTH IRA (same trustee transfer) and still contribute another $2000 to ROTH IRA for tax year 2000, in addition.Will this cause problems if both occur in one ROTH IRA?I read reasons to potentially have more than 1 ROTH IRA (on FAQ board) and don't see any applying to me. However, I thought I read something somewhere (maybe in IRS Pub. 590)that said the ROTH conversion would limit my year 2000 ROTH contribution if they went into the same account. (i.e. that the conversion counts towards the $2000 max. if going to the same account) Broker wants me to set up 2 separate ROTH IRA's (The existing one and one for the IRA to ROTH IRA onversion funds.), but I think they just want more money for separate accounts and/or are still passing on the advice that the IRS told them to pass on back in 1998.What do you think?
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