IRA Rollover

Posts Tagged ‘conversion’

Question: Will splitting my ROTH (after conversion from rollover IRA) IRA affect my ability to recharacterize it later?

I had to roll over my Schwab 401k to a Schwab IRA recently (my employer got bought out), and now I want to convert half of the rollover IRA to a Schwab ROTH IRA. After converting to the ROTH, I would like to transfer a portion of the Schwab ROTH IRA to a Sterling Trust (precious metals) ROTH IRA. Do you know if splitting my ROTH up like this would affect my ability to recharacterize it later?
What if I am paranoid about owning ‘paper gold’? If you can elaborate a little more on the “giant headache” caused by “transferring agents” it would be much appreciated. I might consider CEF as an alternative to buying physical.

Answer: I don’t think so from a legal/tax POV.

However, from a practical POV you are setting yourself up for a giant headache by transferring agents before you decide whether or not to recharacterize. Just wait to transfer. Invest the money at Schwab in GLD. It will probably to better than the sterling trust investment in the long run anyway.

(Not that I am recommending gold investments right now. I am actually in the process of going short as we speak)

Making Smart Retirement Decisions – IRA – Roth Conversion