Combining Roth IRAs

[Guest Keith Woods]

I have converted two IRAs to Roth IRAs, each at a different financial institution. One IRA was a traditional contributory IRA with both qualified and non-qualified contribtions. The other IRA was an ESOP (employee stock ownership distribution). I have transferred the ESOP Roth to the other financial institution and combined it with the other Roth.

Will there be any IRS complications from having combined these two different types of Roth conversions? The institution where I have combined them (Charles Schwab) said this was OK to do.

Thank you.

[Guest ezollars]

The only really difference in the two IRAs was the fact that one was still a "conduit" IRA. That meant that the funds could have been rolled back into another qualified plan. However, once it's irrevocably a Roth (assuming that the ability to convert back has now passed and/or you have no wish to do so), you now simply have two Roth IRAs. There is no problem combining them.

[Guest Keith Woods]

Thank you for the clarification. I had not mentioned that I am retired and have no need to ever convert the ESOP-derived IRA back to another company plan. And since both are now fully converted to Roths, I will proceed ahead with the combination. Your advice was very helpful.