Re: Not co-mingling converted Roth IRA with new Roth IRA?

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Not co-mingling converted Roth IRA with new Roth IRA?
Date: Thu, 21 May 1998 23:17:10 -0400

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>I was simply planning to add to this existing (converted) account,
>but was advised by the Vanguard rep to avoid co-mingling IRA's.
>Why is this?

The reason is what will happen when the proposed tech corrections
bill is passed.

When it is passed, there will be penalties on the withdrawal of any
funds (even if some of the funds came from *contributions*) from a
Roth IRA account within 5 years of the last time *conversion* money
was added to the account.  The fund companies don't want to be sued by
people who get jammed by this, so they are being overly conservative
and are in many cases requiring conversions and contributions to go
into separate Roth IRA accounts so that their customers don't
inadvertently run afoul of the soon-to-be-passed corrections bill.

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 4.1




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