One rollover or two?
A retirement plan has both before tax and after tax funds in it. Funds are distributed from the plan to the participant instead of a direct rollover. Can this person, within 60 days, put the before tax money into a traditional rollover IRA and the after tax into a Roth and this be considered one rollover for the purposes of the once per year rule? Or is this two rollovers?
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2017-08-08 23:13
Assuming the distributing plan is NOT an IRA, a rollover to an IRA does not count at all with respect to the one rollover per 12 month limit. That limit only applies when an IRA to IRA rollover is done, and even then conversions are not counted.