Can they be mixed in one account at one broker? On Form 8606 there doesn't seem to be a difference for the two kind of IRAs. I have been keeping them separate, maybe there is no need for that. Thansk for the advise.
Can they be mixed in one account at one broker? On Form 8606 there doesn't seem to be a difference for the two kind of IRAs. I have been keeping them separate, maybe there is no need for that.Although they can be mixed in one account, I think you will find that the majority of the tax pros on this board do not advise you to do so. It does make life a little simpler if you keep them separate. If you chose to mix them, be sure you keep a clear paper trail documenting what you have done. I don't know for sure but Roy might have something written about it under IRAs in the Tax Strategies FAQ. You might want to read this before you make a non-reversible choice.
When the time comes to take money out of IRAs, you will be asked to state the total which represents non-deductible contributions, and for the purpose of calculating tax to be paid on the distribution, the accounts are to be regarded as all one. If you have rollover and contributory IRAs, there is a possible benefit in keeping them separate on the off chance that someday you might like to roll a former employer's 401k money into a new employer's 401k plan. If you have intermixed the moneys, you lose that option. With deductible and non-deductible IRAs, I can't think of any reason to keep them separate since the law treats them as mixed in any case. Best wishes, Chris
I know this has been asked before and I'm sorry, I still have the question: What is a deductible vs. a non-deductible IRA? Are we talking about a Traditional vs. a Roth?Help, please
What is a deductible vs. a non-deductible IRA? Are we talking about a Traditional vs. a Roth?Traditional IRAs may be deductible or non-deductible depending on your income level and whether or not you are covered by a qualified pension, 401(k) plan. Roth IRAs are always non-deductible. You can read more about it in the Tax Strategies FAQ so you understand the differences better. There is a whole section on IRAs.
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