If I convert to Roth IRAs each year for 10 years, is it necessary to keep each of the conversions in its own separate account? I know there is a five year holding period for each conversion. And it is unlikely that I will access any of that money for five years, but is this something that the IRS and I need to keep track of?
Thank you for your question, Anthony. We have passed your question to one of the CPAs at our firm and an answer will be posted to you here as a reply. Thank you again for your question.
Adam, in regard to your question, we have an answer for you from one of our CPAs, Dom. He says the following; The quick and easy answer is that you do not need to keep every separate conversion in its own account. You should however keep track of each conversion and when the conversion is performed. Since each Roth conversion has its own 5 year clock, this will help ensure distributions are not in violation of any of the 5 year rules. Thank you, Dom You may also reach out to Dom by calling our offices! Go to paytaxeslater.com/contact-us and call our offices and ask to speak to Dom!
