If you want to complete a Roth conversion this year, it must be done by December 31. Bear in mind that a Roth conversion is a two part transaction. Part 1 is the distribution of the assets from the traditional IRA, SEP IRA, SIMPLE IRA, qualified plan, 403(b) or 457 (b) account. Part two is the deposit of funds to your Roth IRA. Only Part 1 needs to be completed by December 31; Part two can be completed within the 60-day period. If you are completing a conversion between accounts held at the same financial institution, both transactions are usually done at the same time. However, if the accounts are held at different financial institutions- which is more likely the case if the conversion is being made from a qualified plan, 403(b) or 457(b) plan, you need to make sure that Part one is completed by December 31.
Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.
Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs
Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.