Merging Roth Contributory IRA opened in 1998 with Roth Conversion IRA

[Guest]

I have a Roth Contributory IRA, which I opened in 1998 and have been contributing $2,000/year. I also have a Roth Conversion IRA, which was converted in 1999 from a Regular IRA. All taxes were paid in 1999 on the Roth Conversion IRA. Can I merge these two Roth's and make my paperwork simplier? Are there any drawbacks to merging them? What will my 5 year holding period be, since they were opened in different years? Thanks, Kathleen

[BPickerCPA]

You can do it, there are no drawbacks.

[Guest]

Thank you for your quick response. What about the 5 year holding period? Do the combined monies still tract with the 2 different 5 year holding periods? Or do they revert to the earliest account date, which would be the Roth Contributory IRA, which was opened in 1998. This would benifit the Roth Conversion IRA, since it was opened in 1999.

[BPickerCPA]

You track the two separate five year periods. You need to understand the ordering rules for withdrawals. If you withdraw the conversion within the five year conversion penalty period, then you have to deal with that.

[Guest]

Thank you. I will read up on those rules.