Regarding IRA: Is a rollover the same as a conversion? (IRAs, 401k)

[flyingsaucermom]

I recently (late November) fully maxed our 2016 non-deductible IRAs and converted them to Roths.

I would like to max out our 2017 roths ASAP, but I came across this rule...

[url]https://www.irs.gov/retirement-plans/ira-one-rollover-per-year-rule[/url]

I don't understand the difference between a rollover and a conversion and I am wondering if I have to wait until the end of 2017 to do the backdoor for the tax year.

Can anyone explain the difference or if this rule applies to ira conversions?

[mathjak107]

a rollover is when you take an existing roth at one institution and roll it to another . there is no limits on that and no taxes . how ever if you take possession of that money instead of letting the institutions handle it directly you can only do one roll over a year .

that is to keep folks from actually taking a loan by constantly rolling the money from one place to another and taking possession each time since you have a certain amount of days you can hold on to it before redepositing it in another ira ..

a conversion is taking traditional ira money or 401k money and converting it in to a roth . there are taxes due on that .

[NewbieHere]

You have to sit for 2017 to do back door to Roth IRA. You can contribute 2017 and up to April 2018.

[newnewyorkers]

I have a similar quesion... So i have roughly $50 in a traditional IRA. All contribtions were non deductible. roughly $30k contributions and $20k returns. Can i convert the whole amount ALL AT ONCE if i wanted to, intoa ROTH IRA? Or do i need to cap the conversions to ROTH IRA to $5,500/yr.?

I need to do back door bc i am phased out due to income. I get it that i will have to pay taxes on earnings. Thanks.

[mathjak107]

conversions have no limit