- Start with a funded Traditional IRA.
- Work with Axos Invest to complete paperwork to convert the Traditional IRA to Roth IRA.
- 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.
- 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!
Axos Invest 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.
*Axos Invest LLC and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.