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So I'm getting ready to open this Vanguard IRA account, using money I have in a bank IRA that previously came from my 401(k). I'm told that I can't contribute money to this Vanguard IRA if I want to keep it as a "conduit IRA", which can be rolled back into another 401(k) later.

Problem is, since I want to start contributing to this Vanguard IRA right away, the only way I can do it without "tainting" the rolled-over money is to open a separate IRA. And by doing that, I'll incur some additional fees - another "IRA maintenance" fee ($10) and an Index Fund fee ($10) that I get unless I have $10,000 in my (second) IRA.

So I'm tempted just to "taint" the IRA with 401(k) and just not worry about it. I'm thinking that I probably won't be rolling it back into a 401(k), and that in fact I'll probably convert it into a Roth next year.

But before I do that, is there anything else I need to consider? Are the any other advantages to leaving the IRA "untainted", that will outweigh the $20 I'll have to pay yearly to have a second IRA ?
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