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On This Page
- What is a Roth IRA?
- How to do a Roth IRA conversion
- Who should consider doing a Roth conversion?
- What account types can be converted into a Roth IRA?
- What to watch out for when converting
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On This Page
- What is a Roth IRA?
- How to do a Roth IRA conversion
- Who should consider doing a Roth conversion?
- What account types can be converted into a Roth IRA?
- What to watch out for when converting
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8 min read Published November 25, 2022
Written by James Royal Written by James RoyalArrow RightSenior investing and wealth management reporter Bankrate senior reporter James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more.
James Royal
Edited by Brian Beers Edited by Brian BeersArrow RightManaging editor Brian Beers is the managing editor for the Wealth team at Bankrate. He oversees editorial coverage of banking, investing, the economy and all things money. Roth IRAs offer a number of potential advantages over Traditional IRAs. Traditional IRAs allow for tax-deferred growth of retirement assets, with taxes being due when distributions are taken. Distributions of Roth IRA earnings are tax-free, as long as the Roth IRA has been open for more than five years and you are at least age 59 1/2, or as a result of your death, disability or using the first-time homebuyer exception. Distributions may be subject to a 10% additional tax if taken prior to age 59 1/2. Other features include: A Roth IRA conversion may not be appropriate if you: Anyone is eligible to convert regardless of their income or tax filing status. To discuss the potential advantages of Roth IRAs and Roth IRA conversions with a Wells Fargo retirement professional, call 1-877-493-4727. To determine whether a Roth IRA conversion is right for you, talk to your tax advisor. Converting to a Roth IRA may seem like a lot of work, but we can make it easy. Just call a Wells Fargo retirement professional at 1-877-493-4727, and we’ll work with you throughout the conversion process. Step 1 – Contact a Wells Fargo retirement professional at 1-877-493-4727 to initiate your conversion request and get an overview of the process. Step 2 – Our team will help you open a new Roth IRA account if you don't already have one, fill out the appropriate paperwork, and answer any questions you may have. Step 3 – An account form will be sent to you (emailed, faxed, or mailed) to initiate your conversion.Generally, a Roth IRA conversion makes sense if you:
Before converting there are a few things to consider:
Eligibility
Here’s what to expect:
Do I have to pay taxes when I convert a traditional IRA to a Roth IRA?
What happens when you convert a traditional IRA to a Roth IRA?
Can I convert my traditional IRA to a Roth IRA without penalty?
Is there a limit on converting an IRA to a Roth IRA?