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|Subject: Newby Q. How to convert IRA to Roth||Date: 12/23/1999 10:40 PM|
|Author: bghouse||Number: 16828 of 83134|
I am thinking about taking the funds I have now in a non-deductable IRA account and converting them to a Roth IRA account at a different institution. The nice person at Ameritrade said that I would have to deposit the funds from my existing IRA into a new traditional IRA account at Ameritrade - then request to convert them to a Roth. Whew! The mind boggles at the paper work to do that.
So, I have somewhat resolved myself to that, but I am concerned about the mechanics. I've been told that I can either request Ameritrade to have the funds transfered from my old account, which would take weeks, or that I could request my funds by check which I then would have to deposit within 60 days.
My girlfriend understands that if it's not a direct transfer, if I ever receive a check, that I would then have to pay a penalty.
What is the correct gouge? I'd like to make this happen as quickly as possible and the second scenario seems most efficient.
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