Recharacterize direct Roth rollover?

Submitted by Anonymous on Wed, 2010-12-08 01:28

We know QRP rollover to TIRA followed by conversion to Roth IRA we have recharacterization opportunity.

What about a direct rollover from QRP to a Roth IRA, can it be recharacterized or do I have to go thru the TIRA first to preserve recharacterization option?

Thanks



Submitted by Alan Spross on Wed, 2010-12-08 02:41

You can convert directly from the QRP, and if you choose to recharacterize the funds must then be transferred to a TIRA. They cannot go back to the QRP. If you do not have a TIRA, you will have to open one to receive the recharacterization transfer. Therefore, there is no need to run the conversion through a TIRA first.



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