60-day Rollover
Can you do a 60-day rollover for a traditional IRA and a 60-day rollover for a Roth IRA in the same year, or is it just one rollover total for IRAs in general?
So to confirm, we can do a 60 day rollover in a Roth IRA, and also do a 60 Day Rollover in a Traditional IRA ( like kinds) in the same year, just looking for clarification.
- No, only one like-kind (traditional IRA-to-traditional IRA rollover or Roth IRA-to-Roth IRA) 60-day rollover in a 12-month period. A traditional IRA-to-traditional IRA rollover together with a Roth IRA-to-Roth IRA rollover within a single one-year period would be a violation. This is what was meant by “one rollover in total” in the previous reply.
- A rollover from a traditional IRA to a Roth IRA (a Roth conversion) would not be like-kind and would not count, so if both distributions were taken the Roth IRA distribution could be rolled over and the traditional IRA distribution could be converted to Roth (but would be taxable).
- Rollovers from employer plans like a 401(k) do not count toward the limit.
No, only one in total, not one for each type of IRA. Therefore, if you roll over a TIRA distribution, you cannot rollover a Roth IRA distribution OR a second TIRA distribution until the 12 month waiting period has been completed. But you can convert as many distributions as you wish because a TIRA to Roth conversion moves funds to a different type of IRA. Therefore, if you took a second distribution from a TIRA that was not eligible for rollover back to a TIRA, you could still convert it to Roth or you could roll it into your 401k (if the plan accepts IRA rollovers) since a 401k is not a like kind account. That would eliminate both the tax and the penalty on the second distribution.
Permalink Submitted by Alan - IRA critic on Wed, 2023-08-09 16:42
One rollover in total between like kind IRA accounts.