Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Charli asks:

<<Now a new question, what if I roll another additional amount from my regular IRA to my ROTH. Must this rollover adhere to the same rules, i.e. if I roll 25K this year must I wait until January, 2005 to withdraw any of it and if so how do you or the IRS keep track of what you can and cannot withdraw. This would be particularly difficult if the second rollover contained some of the same stocks that the first one did and both had appreciated substantially.>>

Yes, a second Roth conversion starts a new five-year period on the amount converted. You will report the conversion on Form 8606 and the losing IRA will also provide you and the IRS a Form 1099 showing the distribution. Thus, you have two records for recording the year and the amount, and so does the IRS. The ordering of Roth IRA withdrawals means that all you couldn't take tax-free after a conversion made at age 59 1/2 or later is the earnings on that conversion. All in all, that shouldn't be a big problem.


Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.