SusanY1
Expert Alumni

Retirement tax questions

In order to make a rollover into a Roth that is free from tax, it must be done from a nondeductible IRA, it cannot be done from any Traditional IRA.  The so-call "backdoor Roth IRA" is a nondeductible IRA contribution rolled over into a Traditional IRA   in the same tax year. There is no 5 year rule for this - there is only a 5 year holding period for the funds once they are moved into the Roth before you can take them out of the Roth.

 

You cannot rollover 2018 funds into a Roth or deductible Traditional IRA funds into a Roth without paying tax on the transaction.

 

What you describe sounds like a taxable transaction this year.  

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