Benefit of Segregating Roth Conversions?

[Jerry1]

Yes, that helps. Thanks.

 

[Splash]

OP here. Thanks everybody. Based on the discussion, I think I'll use one account for my Roth IRA and keep diligent records at least until I meet the 59.5 and 5 year requirements.

 

[Fedup]

This is only true if you are over 59 1/2 when you take your distribution.

Given that this is an Early Retirement board, you need to keep this age restriction in mind when discussion penalty/tax-free distribution from Roth IRAs.

If anyone still does not believe me (we have had 2 in this thread so far), please tell me how you would complete IRS Form 8606 part 3 without the conversion details if you are under age 59 1/2.

-gauss

You are right. The reason I don’t keep track of it is because I don’t plan to use them until at least I’m past 70 years old.

 

[corn18]

OP here. Thanks everybody. Based on the discussion, I think I'll use one account for my Roth IRA and keep diligent records at least until I meet the 59.5 and 5 year requirements.

Great plan. According to iORP, I won't need my Roth accounts from 55-59.5 and I will actually continue conversions into my Roth accounts up until age 70. But if I do need them for some reason, I will have the accounting necessary to use them and minimize tax and penalty impacts. A 40% drop in equities might require me to access the Roth money.

Once I hit 59.5, I can throw all the accounting data out and not worry about it. Nice to have the option.

 

[sengsational]

Sadly, all the Roth withdrawal complexity ended for me a few weeks ago.

 

[corn18]

Sadly, all the Roth withdrawal complexity ended for me a few weeks ago.

Congrats! I mean, condolences?!?

 

[kgtest]

Sadly, all the Roth withdrawal complexity ended for me a few weeks ago.

More time to blow that dough!