Roth Conversion: Converting IRAs considerations and next steps Fidelity

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Converting your traditional IRA to a Roth IRA

Learn about the potential benefits of a Roth IRA and how to take advantage of them if you have assets in a traditional IRA
Follow these simple steps to convert your Traditional IRA or old 401(k) to a Roth IRA. Anyone can convert their eligible IRA assets to a Roth IRA regardless of income or marital status. Prior to 2010, only those account owners who had a modified adjusted gross income below $100,000 were eligible to convert. Despite its advantages, Roth may not be the preferred option for all investors. There are three important factors—taxes, time, and costs—that you should consider before you decide if conversion is right for you. can help you weigh these factors and get answers to important questions you may have. Be sure to consult with your tax advisor with regard to your personal circumstances. To learn more about the differences between Roth and traditional IRAs and get a quick overview of eligibility and features, use the . It's also important to note that if you are required to take a required minimum distribution (RMD) in the year you convert to a Roth IRA, you must do so before converting.

Considerations for owners of Roth IRAs

Distributions from a Roth IRA are qualified, and thus tax-free and penalty-free, provided that the 5-year aging requirement has been satisfied and at least one of the following conditions has been met: You reach age 59½ You pass away You are disabled You make a qualified first-time home purchase All other distributions are non-qualified. Non-qualified distributions of converted balances are not taxed again (since they were taxed when converted), but they may be subjected to a 10% penalty unless it's been at least five years since the beginning of the year of your conversion, you've reached age 59½, or one of the other exceptions applies. RMDs are not required during the lifetime of the original owner of a Roth IRA. RMD amounts are not eligible to be converted to a Roth IRA. Answer a few questions in the IRA Contribution Calculator to find out whether a Roth or traditional IRA might be right for you, based on how much you’re eligible to contribute and how much you might be able to deduct on your taxes. Get step-by-step instructions on how to convert to a Roth IRA from a Fidelity or non-Fidelity Traditional IRA or 401(k).

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401(k) rollover Compare Traditional and Roth IRAs This information is intended to be educational and is not tailored to the investment needs of any specific investor. Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets. The tax and estate planning information contained herein is general in nature, is provided for informational purposes only and should not be construed as legal or tax advice. Fidelity does not provide legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. Fidelity Brokerage Services LLC, Member NYSE, , 900 Salem Street, Smithfield, RI 02917 559555.18.0

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