A Roth Conversion IRA is established by converting assets from a Traditional IRA or Rollover IRA to a Roth IRA. Why do this? The ultimate goal is to reduce the amount of taxes paid by you or your beneficiaries. However, not all Roth Conversions result in tax savings. You should review your IRA strategy before committing to this type of IRA. It is important to note that the entire converted amount is subject to regular income taxes in the year of conversion.
As with the other types of IRAs, certain eligibility requirements apply to the Roth Conversion IRA. You may convert amounts from a Traditional IRA or Rollover IRA into a Roth IRA if both of the following requirements are met:
