1998 tax year original Roth conversion to Traditional IRA

[Guest TerryS]

Can a Roth IRA that was established in 1998 with new IRA funds (not converted funds but new tax year IRA funds) be converted to a Traditional IRA? In order to consolidate yearly IRA account management fees, I want to end my Roth account and move those funds to my Traditional account. The Roth balance is small ($1,000) so the account fees do not make it worth keeping it as a Roth since I have only been eligible to contribute to Traditional IRAs since. I see a lot of comments about "converting back" to a Traditional IRA (recharacterization) but these funds were never in a Traditional IRA. Is there a way for me to keep these funds as part of my IRA but as part of my Traditional account vs. a Roth account?

[John G]

No, you can't revert a 1998 Roth. If all your IRA/Roth assets are at the same custodian, your total assets may qualify you to a zero fee account - it surely doesn't hurt to ask. You can always take out 100% of the contributions to a Roth tax and penalty free, but you can't roll over a Roth to an IRA.

I have trouble understanding how you only have $1000 in a Roth from 1998, but now are not eligible to contribute to one anymore. Did you income skyrocket in the past 6 years? Am I missing something?

Start by calling your custodian and telling them about your problem. Ask them if they will waive the fees on the smaller account. If that doesn't work, try paying the fees via check each year.

[Guest TerryS]

Thanks for the reply. The '98 situation was a odd scenario as you thought. The custodian has been waiving the fees every year....I would just rather not have this special/small Roth situation as part of my other portfolio investments. Thanks again.

No, you can't revert a 1998 Roth. If all your IRA/Roth assets are at the same custodian, your total assets may qualify you to a zero fee account - it surely doesn't hurt to ask. You can always take out 100% of the contributions to a Roth tax and penalty free, but you can't roll over a Roth to an IRA.

I have trouble understanding how you only have $1000 in a Roth from 1998, but now are not eligible to contribute to one anymore. Did you income skyrocket in the past 6 years? Am I missing something?

Start by calling your custodian and telling them about your problem. Ask them if they will waive the fees on the smaller account. If that doesn't work, try paying the fees via check each year.