How does a Roth IRA conversion work?

  1. Start with a funded Traditional IRA.
  2. Work with WiseBanyan to complete paperwork to convert the Traditional IRA to Roth IRA.
  3. Pay income taxes on the amount of assets in converted IRA – keep in mind that Traditional IRA contributions are "pre-tax", so when you convert to a Roth IRA, which is funded with "post-tax" dollars, you will owe income tax on the amount of converted assets. More info here.
  4. Talk to your tax preparer/advisor to make sure you understand exactly how much of a tax bill you will get for converting your Traditional IRA assets to Roth IRA assets!

WiseBanyan is not a tax advisor and this should not be construed as tax advice. Please consult your tax advisor before making any tax-related decisions.

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