Types Of Transfers Of Backdoor Roth IRA

To avoid any forms of penalties you would like to keep in mind these rules I’m about to mention below.

To avoid to any forms of penalties you need to have at least one of these following rules :

A trustee-to-trustee transfer

This one is about the fact where the IRA provider sends the money. Is it directly to your Roth IRA provider? Or is it somewhere else?

A rollover 

This one is about the fact where you receive the money from your IRA together with the deposit it into the Roth which needs to happen within 60 days.

A “same trustee transfer

This one is about the fact where your money goes from the IRA. Because it needs to go to the Roth at the same financial institution.

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