Is Rollover IRA A Roth IRA?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    A rollover IRA is an IRA that is funded from the proceeds of another qualified plan, most likely another IRA or a 401(k.) The proceeds of these plans all have the same tax consequence so a rollover is simple. A Roth IRA has different tax rules. In order to roll an IRA or 401(k) into a Roth IRA, the proceeds must be subject to income tax as ordinary income. This may be a very wise thing to do but should not be done without some competent counsel.
    Answered on October 15, 2014
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  2. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Is a rollover IRA a Roth IRA? Well, no. Really two different things going on here. You can't rollover an IRA into a Roth plan without paying taxes on the transaction. In other words you have to cash your IRA out, pay taxes and then you could possibly put them in a Roth. A rollover IRA usually means moving funds from one to another similar plans. Usually, there are no tax consequences for a rollover.
    Answered on October 21, 2015
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