The money you save in a Roth IRA has already been taxed, while the money you put into a Traditional IRA has not been taxed. With a Roth IRA, after the age of 59 ½ you can start taking money out without paying taxes on it. But with a Traditional IRA, you’ll pay taxes on the money you withdraw after 59 ½.
You will pay some taxes when you convert from a Traditional to a Roth IRA, but in most cases, the interest earnings will offset those costs.
We’re happy to help you convert your Traditional IRA to a Roth IRA. Before we get started, it’s important to understand conversion taxes.
Conversion taxes: When you convert your Traditional IRA to a Roth IRA, you will pay taxes on any untaxed amounts in the Traditional IRA. Although paying taxes now might hurt, it will save you from paying taxes on additional interest earnings when you retire.
Here are your three options for converting a Traditional IRA to a Roth IRA:
All checking accounts, savings accounts, and Debit Cards are subject to approval, which may include credit approval. $25 minimum opening deposit required. Please refer to the Terms & Conditions for additional details. Additional terms and miscellaneous fees may apply. Products, features, and benefits offered with accounts are subject to change at any time. and benefits offered with accounts are subject to change at any time."