rollover of taxable ira monies to a 401(k) and waiting perio
Do you have to wait one year to convert to a roth the non taxable monies remaining in an IRA after you have rolled the taxable monies to one’s Company’s 401(k) plan???
Do you have to wait one year to convert to a roth the non taxable monies remaining in an IRA after you have rolled the taxable monies to one’s Company’s 401(k) plan???
Permalink Submitted by Alan Spross on Tue, 2010-06-29 19:45
No, you do not have to wait at all to convert, and it is better not to wait since a delay could result in earnings that would be taxed or a loss that would probably be too small to itemize as a misc deduction.
In fact, you could even do the conversion first and the rollover would still be deemed to be composed of the pre tax amounts in the TIRA. But it is better to do the conversion just after the rollover to the QRP. Sometimes the rollover cannot be completed and if you did the conversion first, then you would probably want to recharacterize your conversion and that would trigger a waiting period to reconvert.