Is Rollover IRA A Roth IRA?

Comments

2 responses to “Is Rollover IRA A Roth IRA?”

1. 

   October 21, 2015

   Larry Gilmore

   Is a rollover IRA a Roth IRA? Well, no. Really two different things going on here. You can’t rollover an IRA into a Roth plan without paying taxes on the transaction. In other words you have to cash your IRA out, pay taxes and then you could possibly put them in a Roth. A rollover IRA usually means moving funds from one to another similar plans. Usually, there are no tax consequences for a rollover.
2. 

   October 15, 2014

   David Pipes

   A rollover IRA is an IRA that is funded from the proceeds of another qualified plan, most likely another IRA or a 401(k.) The proceeds of these plans all have the same tax consequence so a rollover is simple. A Roth IRA has different tax rules. In order to roll an IRA or 401(k) into a Roth IRA, the proceeds must be subject to income tax as ordinary income. This may be a very wise thing to do but should not be done without some competent counsel.