IB - Rolling over Traditional to Roth

Discussion in 'Retail Brokers' started by rd100, Jun 7, 2010.

  1. rd100



    Since IB is not yet allowing converting Traditional IRA held at IB to Roth IRA held at IB, I was wondering if anyone used their rollover option by taking distribution from Traditional IRA and then rolling over funds to Roth IRA within 60 days. This is what IB has on their website-
    1.Rollover: You can receive a distribution from a traditional IRA and roll the funds over (contribute it) to a Roth IRA within 60 days after the distribution.
    [In Funds Management, choose the following deposit methods: Check, Wire or Automated Clearing House (A.C.H.).]

    I.B. Roth IRA owners should be directed to choose "IRA Rollover" on the deposit notification. This selection properly designates the deposit as a "conversion contribution" with the IRS, provided that the funds originated from a traditional IRA. (I.B. is unable to internally transfer funds from a traditional IRA into a Roth IRA.)


    Are their any issues with the method that IB has for tax or penalty reasons? I want to pay taxes on the converted funds from my personal account.

  2. rory_h


    just had a chat with with a IB rep. They do intend to have the conversion software from traditional to roth ready this year..just would not promise...might be better to hang on till late in the year, and see if it happens in time to get the good tax treatment..
  3. We hope the release from traditional to roth will be released this week.
  4. rd100


    That would be great... Could you please post here when this release is out?

  5. Sal I really hope you're right .... but I've been hearing that line (or "later this month") since January......

    Please surprise me! :D :D :D
  6. IB ... please for the love of God....
  7. Now in a nice drawdown ... this would be a good time to roll over the funds.....
  8. The option to roll Traditional to Roth is available in Account Management of our traditional IRA accounts.

    Funds Management > IRA Conversion
  9. AWESOME thanks for getting this done. Perfect timing as I'm in a nice drawdown now. Conversion request submitted!
  10. The rollover occurred last night, everything seems OK. Thanks IB.
    #10     Jun 16, 2010