Get your free financial scoreSign inYour data on this device
Free to use. No account required.

Does the once-per-year rollover rule ever apply to Roth conversions?

No, and this confuses a lot of people. The IRS once-per-12-months rule applies only to indirect, 60-day rollovers between IRAs of the same type, where you receive a check and redeposit it. Roth conversions are not subject to it, so you can do as many conversions as you want in a year. Likewise, direct trustee-to-trustee transfers and rollovers from a 401(k) to an IRA are exempt from the once-per-year limit. The rule really only bites when you personally take possession of IRA money and try to roll it over more than once in a rolling 12-month period. To stay safe, always use direct transfers. Confirm the specifics at irs.gov.

All questionsBrowse the articles
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures