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ZorroFool asks:

<<We converted my wife's traditional IRA over to a Roth in July, and just recently (in the past week) we recharacterized due to the market decline (saved some tax dollars there!!!)

Now the wrinkle. We're taking money from a teacher's state retirement plan and rolling it over into a traditional IRA with the same fund family.

Here's my question. The fund company that is receiving the money says that the traditional IRA account in paragraph 1 still exists for a year after being converted, and it has been emptied out (everything went into the Roth). They also say that the rollover of this new money has to go into a NEW traditional IRA account. I understand about not commingling funds from a rollover with other money that was already there, but we've already emptied the original traditional IRA. Shouldn't we be able to rollover this new money into the traditional IRA account that already exists? Or is that up to the discretion of the fund family? We want to eventually convert this to a Roth as well, and I'd prefer to not have more accounts floating around than is absolutely necessary.>>

If your custodian still carries that as an "open" account, then legally there's no reason I know of to prevent you from using that account to receive a transfer of funds from your spouse's retirement plan. Your custodian must have some internal rules to prevent you from using it for that purpose.

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