I have two smallish Roth IRA accounts that were established when I was much younger based on some summer jobs. One was initiated as a Roth from the start. The other was a traditional, which was converted to Roth. I'm thinking about consolidating them into one account for simplicity and to concentrate buying power, but I was told way back that there were "tax reasons" that I should keep them separate.

I'm thinking that the tax reasons (which I admit I never understood at the time and then just forgot completely as these accounts hung around) had to do with the 5-year rule mentioned in several places, such as this question What is the "Taxable portion of a conversion" in a roth IRA?. It's way more than 5 years now since the conversion, so is there any other reason to continue keeping these account separate?

1 Answer 1


There's no reason. The 5 year rule applies to the amounts, not accounts. At some point of time you couldn't roll over from IRA to 401(k) unless the IRA account was originated in a roll over from a previous 401(k), but that is not a relevant situation for you anyway.

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