Roth Conversion Basics

What is a Roth Conversion

Roth conversions are the transfer of assets that occurs when you move money from a traditional retirement account into a Roth account. There are a few different types of Roth conversion:

Transfer money from a traditional IRA to a Roth IRA.
Roll over a 401(k) to a Roth IRA.
Move money from a traditional 401(k) account to a Roth 401(k) account.

Either way, converting your investments to a Roth allows your earnings to grow and eventually be distributed tax-free, potentially saving you tens of thousands of dollars (or more) in the long run.

There’s no requirement to convert the entire balance of a traditional retirement account to a Roth account all at once—you can do partial conversions whenever you want. It’s smart to spread multiple conversions of a large balance across multiple years to minimize the impact on your taxes and other benefits.

A Roth IRA can be a great place to relocate your retirement savings. Unlike a traditional IRA, you won't have to pay income tax on the money you withdraw or be required to take a minimum amount (RMD) from your account each year after you reach a certain age.

Pension Pros

Pension Pros

Roth Conversion Basics

What is a Roth Conversion