Personal Finance (Not Investing) • Fidelity Roth conversion and tax withholdings - indirect rollover excluded from the one-per-365 day rule?

Thanks! My brokerage and home of the Roth IRA is Fidelity. I would actually prefer withholding from the rollover, which I'd like to make up from taxable, as I'd like to draw down the balance of my TIAA 403(b), which is where the pre-tax funds would originate. I'm over 59-1/2, so no issues there.

Edited to clarify where accounts are held.

Since the distribution is coming from a 403b, you have the choice of replacing the withheld amount within 60 days to either:
1) Your Roth IRA to complete the taxable conversion
2) Your TIRA account if you have second thoughts about the taxable amount. In this case, only the converted would be taxable, not the amount rolled over to your TIRA.

Thanks! I do have one more related question, related to the OP: Would such a rollover/conversion to a Roth IRA, including funds replaced from taxable, begin a one-year clock before I can do another? (I don't want to leave funds in the TIRA because I did a backdoor contribution to the Roth IRA in January.)

Statistics: Posted by toddthebod — Tue May 07, 2024 8:18 am — Replies 23 — Views 2500