I rolled a 401K (approximately $25,000) into a traditional IRA a few years back. I then converted the traditional IRA into a Roth IRA in 1998 (spreading the taxes over four years). My financial advisor says that I cannot contribute to this "conversion Roth IRA" because it originated from a 401K. Is she correct?

Thanks for your help!

She is NOT correct.

But I am NOT surprised.

In 1998, your advisor would have been correct, however the Roth IRA laws were ammended so that Roth conversion money and Roth contribution money can be deposited into the same account.

Thanks for your help!

A few custodians may still be working on the '98 plan, or atleast the front desk folks may say you can not contribute. If you have a problem, contact the back office IRA dpt which is much more likely to informed/trained. There is no IRS rule or reason why you can not contribute to a conversion account.