Multiple transfers in a 12 month period
What are the rules pertaining to multiple IRa & qualified transfers. Specifically; if an IRA is trasfered to another IRA and then simultaneously a portion is converted to a Roth, is this exceptable according to IRS standards? Also, if a transfer from a qualified plan is made to an IRA and then simultaniously a portion is alocated to a Roth, is this exceptable according to IRS standards?
Permalink Submitted by Anonymous (not verified) on Sat, 2009-02-21 04:56
Yes, these are OK since neither direct transfers or Roth conversion or recharacterization rollovers count toward the 12 month one rollover limit. Neither does an indirect rollover FROM an employer plan. In fact one escape hatch if a rollover will exceed the limit is to convert the distribution to a Roth IRA and then recharacterize it back to the TIRA. That would get the funds back in the TIRA without a chargeable rollover.