Roth Conversion Taxes
If I choose to have taxes withheld from a Roth conversion, can I later rollover the withheld amount back into my Roth IRA within the 60-day window?
If I choose to have taxes withheld from a Roth conversion, can I later rollover the withheld amount back into my Roth IRA within the 60-day window?
Permalink Submitted by Alan - IRA critic on Fri, 2025-05-23 11:37
Yes. And the 60 days can extend into the following year. In that situation there would be two conversion 5 year holding periods, eg one starting in 2025 for the original amount converted and another starting in 2026 for the amount not contributed until 2026 to replace the withheld amount.
This can also be done with any rollover eligible distribution, not just a conversion. And while not ideal, it can also be done in part if you do not have the cash to replace the entire withheld amount.
Another option if you have the rollover available (only one permitted in 12 months) is to change your mind about the full conversion amount and prefer to save the tax on the withheld amount. You could roll the withheld amount back to the TIRA instead of the Roth IRA. You would then only owe tax on the amount actually converted.