Roth IRA Conversions

Convert to a Roth IRA and invest in your future

Convert a Traditional IRA to a Roth IRA that offers tax-deferred growth and potentially tax-free withdrawals once you reach retirement.

Benefits of a Roth IRA
  • Withdrawals of contributions are free from federal income tax
  • Withdrawals of earnings are free from federal income tax, provided that
    - you are purchasing your first home ($10,000 lifetime maximum)
    - the Roth IRA has been in existence for at least five years
    - you are age 59½ or older
    - you become disabled or have passed away
  • Required Minimum Distributions (RMDs) are not required
Eligibility requirements

Effective January 1, 2010, you can convert a Traditional IRA to a Roth IRA regardless of your income level. Prior to 2010, individuals or couples with modified adjusted gross income in excess of $100,000 were ineligible to convert retirement savings to a Roth IRA.

Get started today

Use the Roth Conversion Calculator to see an estimate of the potential benefit of a Roth Conversion. To open a Roth, you may select Roth IRA and complete the Roth IRA Distribution Request Form.

Questions about the Roth IRA conversion?

Cost of converting

When you convert to a Roth IRA, you must pay income tax on the otherwise taxable amount of the transfer. To maximize the benefits of conversion, the money to pay those taxes should come from a source outside the Traditional IRA you are converting. You may convert your Traditional IRA over several years to manage the tax consequences. For conversions in 2010, you can pay the taxes due in full during 2010 or in equal installments during 2011 and 2012.

Open An Account
Get up to $500. Roll over your old 401(k) now. Take control of your retirement with TD AMERITRADE's no-hassle rollover. Apply now.
See how much you could save with the Roth Conversion Analyzer
 
 
 
 
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TD AMERITRADE does not provide tax advice. We suggest that you seek the advice of a tax-planning professional with regard to your personal circumstances.

The Roth Conversion Calculator module is provided by Convergent Retirement Plan Solutions, LLC and provides only a rough estimate result and is for Illustrative purposes only. Please consult a Qualified tax advisor regarding your personal situation. TD AMERITRADE and Convergent are separate, unaffiliated companies and are not responsible for each other's services or policies.

Offer valid for individuals who open a new TD AMERITRADE retirement account or a new Amerivest-related IRA account by 04/15/10 and meet funding requirements within 6 months of account opening. Funding/rollover of $25,000 - $99,999 receive $100 cash, funding/rollover of $100,000 - $249,999 receives $250 cash, funding/rollover of $250,000 or more receives $500 cash. Limit one offer per client per calendar year. Not transferable and not valid with TD AMERITRADE Institutional accounts, internal transfers or with other offers. Cash awards are valid within your IRA only and non-transferable to another existing TD AMERITRADE account. Void where prohibited. Account must remain open with minimum funding for 9 months, or TD AMERITRADE may charge the account for the cash awarded to the account. TD AMERITRADE reserves the right to restrict or revoke this offer. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business.

Please consult a legal or tax advisor for the most recent changes to the U.S. tax code and for rollover eligibility rules. Please allow 3-5 business days for any cash deposits to post to account.