With an indirect rollover, you receive a distribution from your traditional IRA. You then have 60 days to deposit it into your Roth IRA.

How many times can you do an indirect rollover?

Only one indirect rollover is permitted within a 12-month period. (That means any 12-month period, not a tax year.) The transfer must be from one account to another account, and cannot be split among multiple accounts.

Can you roll one Roth IRA into another?

The IRS permits you to roll money from almost any tax-deferred IRA, like a traditional IRA, to any other IRA and from any Roth IRA to another Roth IRA. You can also you use a rollover to convert money from a tax-deferred IRA to a Roth IRA.

How is an indirect rollover reported?

How to Report Indirect Rollovers. If you redeposit the entire amount you took out, including making up the $2,000 in the taxes withheld, and you meet the 60-day limit, you can report the rollover as a nontaxable rollover.

Can a Roth IRA conversion be an indirect rollover?

Indirect rollovers that result in a Roth IRA conversion are excluded and will not count against the one indirect rollover per 12-month period rule. The form of the withdrawal must be the same as the form of the replacement to the IRA.

How long does it take to roll over a traditional IRA to a Roth IRA?

However, in that case, you’ll need to deposit the money into your IRA within 60 days to avoid potential adverse tax consequences. You can do only one indirect IRA-to-IRA rollover within a 365-day period (“conversions” or rollovers from traditional IRAs to Roth IRAs are not subject to the limit).

Can you roll over money from one IRA to another?

Roth IRA to Roth IRA Example. If you’re moving funds from one Roth IRA to another, the Roth IRA 60 day rollover rule still takes effect. While technically you only have one Roth IRA in the eyes of the IRS, you can “roll” money over from one brokerage account to another.

Who is ineligible for a rollover of a Roth IRA?

Roth IRA Rollover Eligibility Rules. Before you can perform a rollover, you need to make sure you’re eligible. Under the Roth IRA rollover rules, you’re ineligible to perform a Roth IRA rollover if you inherited the account you’re rolling over from someone other than your spouse.