No. of Recommendations: 1
The main thing to know is that you cannot just open a traditional IRA, convert it to Roth and expect to ignore any other IRAS out there. If you have none, then this is simple, and yes, you can do what you propose. It sounds like this is your case, so easy-peasy.

Taxes - you have to pay taxes on the amount of gain (if any) on entire portfolio of traditional IRAs (or in this case one single Traditional IRA) prorated based on % converted. In your case that's just 100% of gain on the one account, so easy. If you convert quickly there shouldn't be much gain.

And you cannot touch the amount converted for at least 5 years, so you may not want to mix this in with your other Roth account, as that would mean you couldn't tocuh anything there for 5 years (as I understand it, I'm not an accountant though...)

If you have ANY other Traditional IRAs or you convert less than 100% of them it gets kind of complicated. I've been doing it the past few years, and you have to look at the total basis in IRAs and the total gain over the entire portfolio.
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