No. A Traditional IRA and a Roth IRA cannot be combined into a single account or a single plan entity. This is not a policy choice, as it reflects a fundamental difference in how each account type is taxed.
Traditional IRA funds are pre-tax. Contributions may have been deducted, and all growth and distributions are subject to ordinary income tax when withdrawn. Roth IRA funds are after-tax. Contributions were made with money already taxed, and qualified distributions, including all growth, are tax-free.
Combining these two pools of money in one account would create an irreconcilable recordkeeping problem. The IRS requires that each dollar distributed from a retirement account be taxed according to its source. There is no mechanism to track blended pre-tax and after-tax funds within a single IRA.
If you have both Traditional IRA and Roth IRA funds to self-direct, you need two separate plans: one for each tax type. Each plan has its own IRA at IRA Resources, its own LLC or trust entity, and its own bank account. The two plans can invest in the same assets side by side, but they must remain structurally independent.
This is straightforward to set up and is a common configuration for clients who have accumulated both account types over time.
A multi-member LLC, where a Traditional IRA and a Roth IRA each hold a membership interest, is technically possible but creates the same administrative overhead as any partnership structure. The LLC would be required to file a Form 1065 partnership tax return each year, adding cost and complexity that two single-member entities do not carry.
The more fundamental problem is distribution timing. Traditional IRAs are subject to Required Minimum Distributions beginning at age 73. Roth IRAs have no RMD requirement during the account holder's lifetime. A shared entity funded by both account types would face irreconcilable distribution obligations. The Traditional IRA must make withdrawals on a mandated schedule while the Roth IRA has no such requirement. Managing this within a single LLC becomes administratively untenable over time.
Two separate plans, one traditional and one Roth, eliminates these complications entirely.
This information is provided for educational purposes only and should not be interpreted as tax, legal, or investment advice. Readers are encouraged to consult a qualified professional who can offer guidance based on their personal situation.