According to IRA Announcement 2014-32, “A rollover from a traditional IRA to a Roth IRA (a “conversion”) is not subject to the one-rollover-per-year limitation, and such a rollover is disregarded in applying the one-rollover-per-year limitation to other rollovers”
IRS Publication 590-A states that you can withdraw all or part of the assets from a traditional IRA and reinvest them into a Roth IRA within a 60-day window.
If the conversion contribution is completed properly, you can avoid the 10% early withdrawal penalty.
There is no limit to the amount you want to convert to the Roth IRA. However, the amount of distribution will be included in your ordinary income and taxable as ordinary income. Therefore, the distributions could push you into a higher tax bracket.
Any nondeductible contributions will not generally be added into your gross income, but the earnings on the nondeductible contributions will be added to gross income.
As I mentioned, you can complete the rollover by taking the distribution and then adding it to a Roth IRA within 60 days after the distribution.
You can choose to conduct a trustee-to-trustee transfer by having the custodian of your traditional IRA transfer the amount from the traditional IRA to a trustee of the Roth IRA.
If the traditional IRA trustee is also the trustee for your Roth IRA, you can direct a same trustee transfer from the traditional IRA to the Roth IRA.
