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Roth Conversion Limits, Deadlines, and Rules

You can convert your Traditional IRA into a Roth IRA by:

Rollover – You receive a distribution from a Traditional IRA and contribute it to a Roth IRA within 60 days after the distribution (the distribution check is payable to you).

Trustee-to-trustee transfer – You tell the financial institution holding your traditional IRA assets to transfer an amount directly to the trustee of your Roth IRA at a different financial institution (the distributing trustee may achieve this by issuing you a check payable to the new trustee)

Same trustee transfer – If your Traditional and Roth IRAs are maintained at the same financial institution, you can tell the trustee to transfer an amount from your Traditional IRA to your Roth IRA.

A conversion to a Roth IRA results in taxation on any untaxed amounts in the Traditional IRA. The conversion is reported on Form 8606, Non-deductible IRAs.

Traditional IRA funds can be converted to Roth status. There is no limit to the amount that can be converted; however, the amount converted is added to your ordinary income for that tax year. The Traditional to Roth Conversion deadline is Dec. 31.

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Duration: 00:20:31

The Role of Traditional to Roth Conversions

Conversion rules are very open at the moment. This webinar helps answer the question "What should I be thinking about in terms of Traditional versus Roth?"

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