IRA rollover to Roth
I’m currently working with an individual who rolled over his IRA to a new custodian 6 months ago. I understand he cannot rollover until 1 year from his last rollover date. Question is, can he rollover part of this IRA into a Roth now?
Permalink Submitted by Alan Spross on Tue, 2010-02-23 18:19
Yes. Roth conversions are NOT subject to the rollover limit, even if done by indirect Roth conversion.
For other rollovers, note that the 12 month waiting period starts with the date of the prior DISTRIBUTION, not the date of the completed rollover.
Permalink Submitted by Marvin Rotenberg on Tue, 2010-02-23 22:06
The once per year rule does not apply to a trustee to trustee tranfer. It applys if the IRA owner received a check payable to them and then is rolled over witin 60 days. You can do a partial Roth conversion from the new IRA.
Marvin
Permalink Submitted by Richard Stewart on Wed, 2010-02-24 19:32
If a guy converts his IRA to a Roth this Feb 2010, can he do another conversion later this year? For example, he hasn’t made the 2010 contribution to his traditional IRA now and does later this year, and then converts that money for a 2nd conversion this year. This okay?
Permalink Submitted by Alan Spross on Wed, 2010-02-24 23:35
Yes. A taxpayer can make as many different conversions as desired. Each TIRA custodian will just add them all up and issue one 1099R. For 2010 conversions, the taxpayer must choose to either defer the income reporting on all conversions or opt out of deferral on all of the 2010 conversions.