The process of transferring funds from a traditional IRA or 401(k) to a Roth IRA. The converted amount is included in taxable income for the year of conversion, but future qualified withdrawals from the Roth IRA are tax-free.
The process of transferring funds from a traditional IRA or 401(k) to a Roth IRA. The converted amount is included in taxable income for the year of conversion, but future qualified withdrawals from the Roth IRA are tax-free.