60-day rollover rules for Roth Conversion & IRA rollover

Submitted by Cheryl Moss on Sat, 2019-12-07 20:46

I know I can take a direct distribution (not direct transfer) from an IRA and deposit it within 60 days to a Roth IRA as a conversion contribution. If I take a single distribution from the IRA and deposit, say 50%, to a Roth IRA (conversion) and re-deposit the other half back to the IRA (same or different one as a rollover) within 60 days, does this violate the once in 12 month rule?



Submitted by Alan - IRA critic on Sat, 2019-12-07 23:12

  • Splitting the distribution between a conversion and a non conversion rollover is treated as one rollover for purposes of the limitation. Therefore, this is OK unless you have rolled over another distribution in the 12 month period prior to this distribution. You also cannot do another 60 day rollover for the 12 months following this distribution if the current rollover is allowed. Another way to put it is to simply ignore the converted amount for purposes of the one rollover limit.
  • If you DID rollover a prior distribution in the last 12 months, then the non conversion portion of this distribution cannot be rolled over. In that case, you might consider converting the 50% you didn’t convert to a Roth to make the distribution fully converted, since this is allowed.

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