Single IRA distribution – part rollover to IRA and part to Roth IRA – 12 month rule
If I take a single IRA distribution (say $10,000) on 12/16, and I rollover part of it (say $2,000) to the same or different IRA and the balance ($8,000) to a Roth IRA as a conversion, both within 60 days, does this count as a single rollover (okay within the 12 month rule) or does it count as two rollovers in 12 months, thus violating the 12 month rule?
Permalink Submitted by Alan - IRA critic on Tue, 2019-12-10 01:50
It is just one rollover because you can just ignore the Roth conversion since these do not count toward the one rollover limitation. However, you are still using up one rollover with the 2,000 rollover, so you are OK as long as you have one 60 day rollover available to you before you take this distribution. Note that even if you rolled over the distribution on different days to TIRA accounts (no conversion) it still only counts as one because there was only ONE distribution done. The rollover limitations is counted by the distributions, not be the rollover contributions. That means you could split one distribution multiple ways and dates, but could not roll any distribution taken on a different day.
Permalink Submitted by Cheryl Moss on Tue, 2020-01-21 19:50
A belated thank you for your help with this! Much appreciated!