Ask Terry Questions Roth IRA –merge conversion with original Roth?

Roth IRA –merge conversion with original Roth?

By Terry Savage on August 28, 2018 | Investments

Can I merge a newly converted ROTH IRA into the Roth IRA I currently have. So in the end I would have only one Roth or will I have to keep two separate ROTH accounts?

Terry Says

Theoretically, you could merge them. But I’m pretty compulsive about record-keeping — and I think you might be asking for trouble at some time in the future. I’d keep them separate — and at separate custodians (perhaps Fidelity and Vanguard) so there’s no question in the future or after your death. And the bonus to this strategy is that you can name two different beneficiaries! Remember to give each beneficiary information so that they don’t just “take the money and run” after your death; they will be able to roll it over and keep the money growing. the beneficiary, however, will be subject to some Required Minimum Distributions, which is not the case in your lifetime.

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