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Ask The Expert: Converting to a Roth

Q: Is money transferred from Traditional IRA to Roth IRA considered earned income in the year it is transferred?
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A:

Yes, anyone can convert their IRA to a Roth IRA regardless of income or marital status.  A conversion is a transfer of funds from one IRA account to another.

You will owe income taxes but not penalties on money converted.  Most IRA custodians provide a conversion calculator or checklist to help you with this process.  Take advantage of these tools!

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