Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
So I assume I don't want lump contributions from earned income and conversions from a traditional IRA into the same Roth account?

Why not? As already mentioned, what happens in the IRA stays in the IRA. If you meet the requirements for qualified distributions, then you don't have to fill out a Form 8606.

And if you take non-qualified distributions, you must document the withdrawals using Form 8606, no matter which Roth IRA account the distribution comes from, to determine any taxes or penalties that are due. The Form 8606 requires you to account for all of the Roth IRA accounts that you own as your total Roth Individual Retirement Arrangement (not Account) - so keeping separate accounts for contributions and conversions serves no purpose from a tax perspective.

AJ
Print the post  

Announcements

Disclaimer:
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.