Can a withdrawal form a convential IRA and a Deposit into a Roth IRA be made in the same year. In other words fund the Roth IRA from the existing conventional IRA.

Yes however, it depends;You can make a Roth IRA contribution in the same year that you roll over an existing IRA if your taxable income falls within the IRS Roth IRA income limit guidelines. Generally, IRA rollovers involve the movement of funds contributed in a prior tax year from one custodian to another and these transfers are non-taxable events. The IRS only allows taxpayers who have AGI below certain levels to make annual Roth IRA conversions. When you convert a traditional IRA to a Roth, the amount of the conversion adds to your income for the year. The amount of your regular income combined with the rollover amount may cause your overall AGI to exceed the Roth IRA income limits. This would not stop you from rolling your traditional IRA into the Roth but would mean you could make a new annual contribution to the Roth in that tax year. As of 2011, married people filing jointly can make full contributions if they earn less than $169K and single people earning up to $107K can also make full contributions. Some higher earners can make partial contributions. When you convert from a traditional IRA to a Roth IRA in the same year you open it, you have to report the deduction for the IRA contribution and the amount of the conversion on your income taxes. This requires you to use either Form 1040 or Form 1040A. The deduction decreases your taxable income, but your conversion to R-IRA increases it. If you have any earnings on the money in the traditional IRA before you convert, you also need to include that in your taxable income. No penalties will be assessed on the conversion.
When you decide to move IRA funds from one custodian to an account held by a different custodian, you can either roll over the money or transfer it. Rolling IRA money over involves the account custodian giving you a check that contains the funds that you must reinvest into a new IRA within 60 days. The custodian withholds 20 percent of the money (UNLESS the money is from IRA)to cover taxes but you reclaim this money when you file your annual taxes. A direct transfer involves one custodian directly sending funds to a new custodian without involving you or withholding taxes