60 days for indirect rollover
I understand you can only do one indirect rollover per 12-month period. I think this is true for an IRA to an IRA rollover. I am told by Fidelity that if I am doing an indirect Roth IRA conversion from a 403B plan to a Roth IRA, I can do as many of these as I want in a year.
I am recently retired, and I would like to pay my income taxes by withholding taxes from the 403B conversion, then depositing the full amount to the Roth IRA within 60 days using money from my regular brokerage account.
- Is fidelity correct that I can do this more than once per year with no issues because it isn’t from an IRA to an IRA?
- Are there any other issues you see with doing this method?
I was hoping to do my Roth IRA conversions from my 403B and pay my income taxes this way up until I have to do RMDs. I am just barely over 59.5. I have the 403B plan at work and Roth IRAs with the first contribution done in 2002. I have no traditional IRAs. They were all converted to the Roth IRA long ago.
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2024-06-11 18:47
Fidelity is correct. You could do this whether you rolled the distribution (and whether you replaced the mandatory 20% withholding or not) to your TIRA or your Roth IRA. The one rollover limitation never applies to distributions from a non IRA plan, just the 60 day rollover deadline. And if you take the distribution later in the year you will generate more income on the amount of other funds you plan to use to replace the withholding.
Permalink Submitted by Rebecca Hunninghake on Tue, 2024-06-11 18:59
Thank you!