Limit on Roth Conversions
I was told today by a tax professional that there was a new rule limited roth conversions. She stated that you are now limited to ONE Roth Conversion every FIVE years. I have never heard of this and cannot find anything that supports this.
Can you please advise if this is correct?
Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2015-03-11 17:24
Never heard of any such thing, not even for proposed legislation. This person is clearly confused and is probably misinterpreting the Roth conversion 5 year holding period to avoid penalty. Of course, that rule only addresses distributions, not the conversion itself.