IB Roth Partial Transfer? Why not?

Discussion in 'Retail Brokers' started by luh3417, Oct 13, 2005.

  1. luh3417

    luh3417

    Does IB ever contemplate letting people convert all, or better still do partial rollovers, from traditional IRA to Roth IRA? What's so complicated about this? The only way to do it is pick some other broker, transfer your entire IRA to them, split it up or roll it over there, then transfer it back. So IB: what's up with that?

    I found this article which says amazingly "Congress gave everyone a one-year window in 1998 to roll over their Roth and then spread the pain over four years. That's gone. But you can do the same thing by rolling your IRA funds into a Roth one-fourth a time." http://moneycentral.msn.com/articles/retire/invest/1211.asp?Printer

    Only minor downside I presume, is you need to use repeated "low" income years to pull it off (so in that sense its not as good as the 1998 window). But its a remarkable tool, you could do it in 2 or 3 unequal years or whatever. (Assuming you meet the other Roth rollover qualifications). (And assuming you're IRA is not yet, or currently, at IB)