Rollover of Roth IRA

Home Fairmark Forum Retirement Savings and Benefits Rollover of Roth IRA

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  • #3671
    wanttoknow
    Participant

    I have a Roth IRA which has already satisfied the 5-year rule. I want to divvy it up among multiple new custodians, so what is now with custodian A goes to custodians B and C. If I do that by rollover, I know each rollover has to get done within 60 days.

    Does the one rollover per 12 months limit apply to Roth IRAs? If so, I hope that applies separately to each of the portions going to B and C.

    #3672
    kaneohe
    Participant

    Yes, the one rollover rule applies to all your IRAs combined (Roth and TIRA) so if you did B and C, that would be 2 rollovers. Best to move by
    direct transfer……trustee to trustee.
    https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions

    #3675
    Alan S.
    Participant

    If you have not rolled over any other distribution in the last 12 months from any type of IRA, you can take a single distribution from A and split it up into two rollover contributions to B and C with the B and C deposits even done on different days as long as within 60 days from the distribution date.

    Of course, this would then eliminate any other distributions from being rolled over in the next 12 months, so as Kaneohe indicated it is best to do a direct transfer from A to C and another from A to B.

    • This reply was modified 2 years, 2 months ago by Alan S..
    #3677
    wanttoknow
    Participant

    Thanks, kaneohe and Alan. Glad I asked!

    • This reply was modified 2 years, 2 months ago by wanttoknow.
    • This reply was modified 2 years, 2 months ago by wanttoknow.
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