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Learning, Sharing, and Teaching => Investor Alley => Topic started by: nofool on January 16, 2013, 03:56:45 PM

Title: Simple and potentially dumb question about Roth IRA transfer
Post by: nofool 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?

Title: Re: Simple and potentially dumb question about Roth IRA transfer
Post by: sol 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.

Title: Re: Simple and potentially dumb question about Roth IRA transfer
Post by: nofool on January 17, 2013, 09:53:04 AM

Thanks, Sol! Cheers :)

Title: Re: Simple and potentially dumb question about Roth IRA transfer
Post by: Crash87 on January 17, 2013, 05:44:17 PM

Quote from: sol 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.

Correct.

Quote from: sol on January 16, 2013, 05:35:53 PM

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.