ira rollover followed by roth conversion
I did a trustee to trustee xfer of a 401k to a new IRA account. Then added some more money via a rollover into the same new account. this was about 3 months ago (Sept-Oct). Now I see that I would like to do a Roth conversion on this account.
Does a Roth conversion count as a rollover for the 12 month rule? If it does, can this be done this year as a recharacterization without triggering the 12 month rule?
What if I do a partial recharacterization this year… do I have to wait 12 months to do an additional one?
Permalink Submitted by Alan Spross on Mon, 2008-12-22 04:07
No problem here – neither conversions or recharacterizations count toward the one rollover limit. Of course, recharacterizations must be done by direct transfer anyway and cannot be done by rollover.
There is no waiting period or other limit for recharacterizations, either total or partial. You have from the day after the conversion to the extended due date for the return. However, there is a time limit for reconversions of the same amount.