Roth conversion

Submitted by Doug Schauberger on Fri, 2019-08-09 18:27

One of my financial advisors tells me that converting a Roth IRA is a 2-step process, I have to convert my Simple IRA to a regular IRA, before it can go to a Roth. Is that right?



Submitted by William Tuttle on Fri, 2019-08-09 21:51

  • Once upon a time a two step process was required from qualifed plans, but that hasn’t been true for many years.
  • Keep in mind, only rollovers to another SIMPLE IRA are allowed until it has been two years since the first contribution. Otherwise the rollover is an excess contribution that must be removed,  along with any earnings subject to oridnary income taxes and a 25% penalty.

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