@LKarkos wrote:
TT says "There is almost always a time limit of 60 days to complete a conversion or rollover, with large penalties if the limit is not met." He Rolled his 401K into a Traditional IRA in July of 2020. Does that mean it is too late to convert that account created last year into a Roth IRA without paying significant penalties?
The 60 day limit is on indirect *rollovers* (not conversions) if he cashed out the 401(k) and received a check made out to him, for him to deposit it in an IRA. A direct trustee-to-trustee rollover (code G 1099-R) does not have a 60 day time limit.
A Traditional IRA can be converted to a Roth anytime. There are no penalties but a Conversion is taxable as ordinarily income.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
