401 roll to ira
In 2020 I did 2 separate transfers from a traditional ira . to a Roth in dec. in may 2021 I did a transfer or roll from 401k to a traditional ira. I have learned I made several mistakes. What should I do. Is the 401k to a trad ira a violation. All transaction were direct from institution to institution. Pls help
Permalink Submitted by Alan - IRA critic on Mon, 2021-11-01 15:35
If you are referring to the one rollover limitation over 12 months, there is no violation here. The limitation only applies to IRA to like kind IRA 60 day rollovers. A Roth conversion does not count because it is done to another type of IRA. In addition, any direct transfer does not count either because you never have control of the funds. Therefore, none of your 3 transaction violates the one rollover limitation for two reasons. Or are you referring to some other type of violation? Of course, you will owe taxes on the pre tax portion of any Roth conversions.
Permalink Submitted by geraldine underwood on Mon, 2021-11-01 17:09
Thank you for your quick response and the info you provided. Can’t thank you enough.