TD Ameritrade

Roth IRA Conversions

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 earnings are free from federal income tax, provided the Roth IRA has been in existence for five years and you are at least 59½.
  • Contributions can be withdrawn anytime without federal income taxes or penalties.
  • RMDs (Required Minimum Distribution) are not required.
  • Distributions for your beneficiaries are tax-free.

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.

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.

Open an IRA in just 15 minutes
+ get up to $600*See details

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AdChoices

Market volatility, volume and system availability may delay account access and trade executions.

TD Ameritrade does not provide tax advice.

*Offer valid for one new Individual, Joint, or IRA TD Ameritrade account opened by 04/30/2020 and funded within 60 calendar days of account opening. To receive $100 bonus, account must be funded with $25,000- $99,999. To receive $300 bonus, account must be funded with $100,000-$249,999. To receive $600 bonus, account must be funded with $250,000 or more. Offer is not valid on tax-exempt trusts, 401(k) accounts, Keogh plans, profit sharing plans, money purchase plans, accounts managed by TD Ameritrade Investment Management, LLC, TD Ameritrade Institutional accounts, or current TD Ameritrade accounts. Offer is not transferable, is not valid with internal transfers, and is not valid in conjunction with certain other offers.  Limit one offer per client. Account value of the qualifying account must remain equal to, or greater than, the value after the net deposit was made (minus any losses due to trading or market volatility or margin debit balances) for 12 months, or TD Ameritrade may charge the account for the cost of the offer at its sole discretion. TD Ameritrade reserves the right to restrict or revoke this offer at any time. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. Please allow 3-5 business days for any cash deposits to post to account.  (Offer Code: MKT600)

Taxes related to TD Ameritrade offers are your responsibility. All Promotional items and cash received during the calendar year will be included on your consolidated Form 1099. Please consult a legal or tax advisor for the most recent changes to the U.S. tax code and for rollover eligibility rules.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

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