Author Topic: Simple and potentially dumb question about Roth IRA transfer  (Read 1925 times)

nofool

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Simple and potentially dumb question about Roth IRA transfer
« on: January 16, 2013, 03:56:45 PM »
Hi guys, quick question. If I want to rollover a Roth IRA at one broker to a Vanguard Roth IRA that I'm about to open, do the funds count as part of the $5500 contribution limit? I'm assuming not, otherwise people that have a balance of greater than $5500 would be penalized. I'm 90% sure I'm correct, but can anyone confirm?
« Last Edit: January 16, 2013, 04:00:15 PM by nofool »

sol

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Re: Simple and potentially dumb question about Roth IRA transfer
« Reply #1 on: January 16, 2013, 05:35:53 PM »
As long as the funds are already in a Roth account, they don't count against your contribution limit.  Come to think of it, I'm pretty sure they don't count against your limit even if you're rolling over from a traditional IRA.

note:  not a CPA or professional financial planner.

nofool

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Re: Simple and potentially dumb question about Roth IRA transfer
« Reply #2 on: January 17, 2013, 09:53:04 AM »
Thanks, Sol! Cheers :)

Crash87

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Re: Simple and potentially dumb question about Roth IRA transfer
« Reply #3 on: January 17, 2013, 05:44:17 PM »
As long as the funds are already in a Roth account, they don't count against your contribution limit.

Correct.

Come to think of it, I'm pretty sure they don't count against your limit even if you're rolling over from a traditional IRA.

Also correct.