How do I convert my current Individual Retirement Account into a new Roth IRA?
Generally, a taxpayer can convert his or her conventional IRA into a new Roth IRA if the taxpayer s adjusted gross income is less than $100,000 (for both single and joint filers). Any amount that would have been taxable as income when withdrawn from the existing account will be taxed. To convert to a Roth IRA , you must complete a Roth IRA Adoption Agreement and a Roth Conversion form. Be certain to indicate on the Roth Conversion form whether taxes are to be withheld from the IRA funds or will be paid from another source. Once the Roth Conversion IRA has been established, assets in the ordinary IRA will be moved to the Roth Conversion IRA. If you do not wish to convert the entire amount, you must indicate on the conversion form the exact security description and the amount of cash that is to be moved from the ordinary IRA.
