Message Font: Serif | Sans-Serif
No. of Recommendations: 0
That is, may I combine my Roth IRA I started when the Roth IRA came into existing almost 3 years ago and a second Roth that was created last year by converting a Traditional IRA to a Roth?

Yes. Contact the custodian of the Roth IRA where you want the money to be, and tell them that you wish to have funds transferred from the other Roth IRA account to it. They should send you the paperwork to request the transfer from the custodian you are leaving.

As long as this is a custodian-to-custodian transfer, there should be no tax nor penalty. However, there might be exit fees or transaction costs with the custodian you are leaving or the investments that custodian is holding for you.

Keep in mind that you can combine only Roth IRAs that are FBO your name; you cannot, for example, combine your Roth IRA with your wife's Roth IRA.

If yes, when does the 5 year clock start ticking for this combined Roth IRA?

My understanding is that the 5-year clock starts with the oldest clock and applies to all Roth IRA accounts with the same For Benefit Of designation, whether the accounts have been combined or kept separate. (This is where it may be handy to save the paperwork of the original contribution or the original conversion.) If I am wrong, hopefully someone will correct this misunderstanding.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.