Are contributions to a Traditional IRA tax deductible?
Contributions to a Traditional IRA may be deductible based on your modified Adjusted Gross Income (“AGI”), your age, and whether you and/or your spouse are covered by employer sponsored plans. Please speak to your tax advisor for more information.
How do I convert my Traditional IRA to a Roth IRA?
- The first step is to set up a Roth IRA account by completing an Account Application.
- Next, you need to submit a valuation of the asset that your existing Traditional IRA is invested into, using one of the following forms:
- Finally, you must submit a Roth Conversion and Recharacterization Request form to finalize the conversion of your Traditional IRA to a Roth IRA.
There are five key steps involved when converting a traditional IRA to a Roth IRA:
- You must first open a Roth IRA account, if you haven’t already done so, by completing an application, in addition to any other applicable forms.
- You must submit a government-issued photo ID (if choose to mail in the application form) and include a check for the Establishment and Annual Account Maintenance Fees.
- You must complete a Roth Conversion & Recharacterization Request form indicating whether you want to do a full or partial conversion of your Traditional account.
- If you choose to do a partial conversion, we need to know the asset(s) and the amount you wish to convert.
- If you are converting non-cash assets, we must have an up-to-date verifiable valuation of the asset(s) you are converting. If you are converting real property, we must have an appraisal from a certified appraiser.
We will process these requests in the order we receive them. We cannot start the conversion until all of the forms and documentation have been provided. You will be notified if we need additional information. For the conversion to be effective for a given tax year, the valuation and the request (Roth Conversion & Recharacterization Request) must be dated in that year.
Who is eligible to contribute to a Traditional IRA?
You are eligible to make contributions to a Traditional IRA if you (or, if you file a joint return, your spouse) received taxable compensation during the year, and you are not age 70 1⁄2 by the end of the year. You and your spouse are required to open separate IRAs.