facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause

What You Need to Know About Roth Conversions

You don’t need to have earned income to do a Roth conversion*.
 
 You can do a Roth conversion even if your only income is Social Security, for example.
 
 You can convert any amount of an IRA to a Roth, there is no limit or minimum.
 
 You don’t have to convert the entire IRA at one time.
 
 Estimated taxes should be paid in the quarter of conversion.







*Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.