Roth Conversion

Roth Conversion

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Roth Converstion 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 any untaxed amounts in the tTraditional IRA. The conversion is reported on Form 8606, Nondeductible 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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