What is a Roth conversion?

A Roth conversion involves a transfer of assets from your Traditional IRA or employer-sponsored retirement plan, such as a 401(k), 403(b) or Government 457, into a Roth IRA. Converting before-tax money to a Roth IRA triggers a taxable event; you will not owe tax on any after-tax amount converted.  Subsequent investment earnings can be tax- and penalty-free if you maintain the account at least five years and take withdrawals after age 59 1/2, or for disability, death or using the qualified first time home buyer exception. Learn more about converting to a Roth IRA on the IRS’ website.