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Roth mixed with in Traditional contributions


Pixie

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I have a client that has self directed brokerage accounts. The accounts have both Roth and Safe Harbor contributions mixed together in each individual account. We track the Roth earnings separately but it is not as precise as it would be if the contributions were in two brokerage accounts. Is this permitted?

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But it is not advisable. I would definitely have two separate accounts. What if the participant wants to invest in high growth securities in Roth and fixed income in pre-tax (which would make a lot of sense...).

Also, how can you guarantee the IRS will not challenge the cumulative earnings allocations between the sources?

In a pooled account I think it is a lot different, but with brokerage accounts, I think commingling is a little silly...

Austin Powers, CPA, QPA, ERPA

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