Mar 25

Question by Mike201JC: Does transferring a Roth IRA to another institution impact the five year rule for qualified distributions?
If I transfer a Roth IRA from one financial institution to another, will the five year waiting period for tax-free qualified distributions be impacted, or will it still be calculated from the date I first contributed to the IRA at the original institution?

Best answer:

Answer by Bash Limpbutt’s Oozing Cyst©
No, rollovers between like type accounts (i.e. Roth to Roth) do not affect the calendar at all.

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3 comments so far...

  • Chas Said on March 25th, 2011 at 7:08 pm:

    No it doesn’t.

  • dawgdays Said on March 25th, 2011 at 7:24 pm:

    No. That’s a transfer, not a distribution.

  • tro Said on March 25th, 2011 at 7:42 pm:

    it would be better if you let the institutions transfer the money between them so that you do not have constructive receipt of the money

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