Section 1 Rollover contributions from Roth IRAs to designated Roth accounts
Treatment as rollover distribution for purposes of Roth IRA— Section 408(d)(3)(A) of the Internal Revenue Code of 1986 is amended by striking “; or” at the end of clause (i) and inserting a comma, by striking the period at the end of clause (ii) and inserting “, or” and by inserting after clause (ii) the following new clause:
“(iii) the entire amount received (including money and any other property) is paid in a direct trustee-to-trustee transfer from a Roth IRA to a designated Roth account (within the meaning of section 402A).”
Treatment as rollover contribution for purposes of desginated Roth account— Section 402A(c)(3)(B) of such Code is amended by inserting “or under section 408(d)(3)(A)(iii)” after “subparagraph (A)”.
Coordination with nonexclusion period— Section 402A(d)(2)(B) of such Code is amended—
by striking “earlier” in the matter preceding subclause (i) and inserting “earliest”,
by striking “or” at the end of clause (i),
by striking the period at the end of clause (ii) and inserting “, or”, and
by adding at the end the following new clause:
“(iii) if a rollover contribution was made to the designated Roth account from a Roth IRA, the first taxable year in which such a rollover contribution was made.”
Effective date— The amendments made by this section shall apply to amounts paid or distributed after the date of the enactment of this Act.