Is there anything special I need to do as far as moving cash from one Roth IRA to a new Roth IRA account at a different institution?
In the end I will have two Roth IRA accounts and the original should remain open with some assets.
Partial Cash Roth IRA Transfer
Partial Cash Roth IRA Transfer
Ben |
Young Investor and Learning
Re: Partial Cash Roth IRA Transfer
Under the new indirect rollover restrictions, you should save the one rollover permitted for true emergencies. Therefore, you should initiate a non reportable trustee to trustee transfer with the receiving IRA custodian, who will order the transfer from your other Roth custodian.
This will reserve your one permitted rollover (for all your IRAs combined, not one PER account) for emergencies. It also makes your tax filing easier since a transfer is not reported to the IRS on your return.
Also, note that all your Roth IRAs are considered as one combined account for tax purposes, so just keep track of your contributions or conversions by the total and the year, no need for a per account breakdown.
This will reserve your one permitted rollover (for all your IRAs combined, not one PER account) for emergencies. It also makes your tax filing easier since a transfer is not reported to the IRS on your return.
Also, note that all your Roth IRAs are considered as one combined account for tax purposes, so just keep track of your contributions or conversions by the total and the year, no need for a per account breakdown.