Roth Conversion Limits, Deadlines, and Rules
You can convert your Traditional IRA into a Roth IRA by:
– You receive a distribution from a Traditional IRA and contribute it to a Roth IRA within 60 days after the distribution (the distribution check is payable to you).
– You tell the financial institution holding your traditional IRA assets to transfer an amount directly to the trustee of your Roth IRA at a different financial institution (the distributing trustee may achieve this by issuing you a check payable to the new trustee);
Same trustee transfer
– If your Traditional and Roth IRAs are maintained at the same financial institution, you can tell the trustee to transfer an amount from your Traditional IRA to your Roth IRA.
A conversion to a Roth IRA results in taxation on any untaxed amounts in the Traditional IRA. The conversion is reported on Form 8606, Non-deductible IRAs.
Traditional IRA funds can be converted to Roth status. There is no limit to the amount that can be converted; however, the amount converted is added to your ordinary income for that tax year. The Traditional to Roth Conversion deadline is Dec. 31.