The Step-by-Step Process for Converting to a Roth IRA

How a Roth conversion actually works

A Roth conversion means moving money from a traditional IRA, SEP-IRA, SIMPLE IRA, or a 401(k) into a Roth IRA. You instruct your financial institution to transfer the funds, you pay income tax on the amount converted in that tax year, and the money then grows tax-free in the Roth account. The conversion itself takes a few days to a few weeks depending on your institution, but the tax bill arrives when you file your return the following spring.

The conversion is not automatic. You have to request it. Your bank, brokerage, or plan administrator will not do it unless you tell them to. The IRS does not require you to convert anything — this is entirely your choice, and you can convert as much or as little as you want in any given year.

Unlike traditional IRA withdrawals, there is no age limit on when you can convert. You can convert at 35 or at 75. You also cannot undo a conversion after 2017 — if you change your mind, you are stuck with the tax bill and the new Roth account.

Key Takeaways

You request the conversion directly from your financial institution by phone, online portal, or written form, naming the account you are converting from and the Roth IRA you are converting to.
The financial institution moves the money and reports it to the IRS on Form 1099-R; you then report it on your tax return and pay income tax on the full amount converted.
The conversion is complete once the money lands in your Roth IRA, which usually takes three to ten business days, though some institutions take longer.
You must have a Roth IRA open before you convert; if you do not, you need to open one first, which takes one to two business days.
The tax you owe is based on your total income that year, so converting in a low-income year costs less than converting in a high-income year.

Step 1: Open a Roth IRA if you do not have one

You cannot convert money into a Roth IRA that does not exist. If you already have a Roth IRA open at any financial institution, skip this step. If you do not, you need to open one before you request the conversion.

You can open a Roth IRA at a bank, brokerage, credit union, or robo-advisor. The process is online or in person and takes about 15 minutes. You will need your Social Security number, a government ID, and a current address. The account is usually active within one to two business days. You do not need to fund it with any money at this point — it just needs to exist and be registered in your name.

If you already have a Roth IRA at one institution and want to convert money into a different Roth IRA at another institution, that is fine. The IRS treats all your Roth IRAs as one account for contribution and conversion limits, but you can hold them at different places.

Step 2: Contact your current financial institution and request the conversion

Call the customer service number on your account statement or log into your online portal and look for a "transfer," "distribution," or "conversion" option. Some institutions have a dedicated conversion request form you can download or request by mail. Tell them you want to do a Roth conversion and provide the name and account number of the Roth IRA you are converting into.

Be specific about the amount. You can convert the entire balance of your traditional IRA or 401(k), or you can convert only part of it. If you are converting part of it, state the exact dollar amount or the percentage of the account you want moved. If you say "convert my IRA," some institutions will assume you mean the whole thing.

Ask the institution whether they charge a fee for the conversion. Most do not, but some brokerages charge $25 to $100 for outgoing transfers. Ask also how long the transfer typically takes — most say three to ten business days, but some take longer, especially if the money is invested in funds that need to be sold first.

Step 3: Wait for the money to arrive in your Roth IRA

Once you submit the conversion request, the institution will sell any investments in the account (if needed), move the cash, and deposit it into your Roth IRA. This usually takes three to ten business days. You can track the status by logging into both accounts — you should see the money leave the traditional account and arrive in the Roth account.

If the money does not arrive within the timeframe the institution quoted, call them and ask for a status update. Delays sometimes happen if the account holds mutual funds that settle slowly or if there is a processing backlog.

Once the money is in your Roth IRA, the conversion is complete from an operational standpoint. The tax consequences, however, are not settled until you file your tax return.

Step 4: Report the conversion on your tax return

Your financial institution will send you a Form 1099-R in January or February of the year after the conversion. This form reports the amount you converted. You will also receive a Form 5498 that shows the conversion amount. Keep both forms.

When you file your tax return, you report the conversion on Form 8606 (Nondeductible IRAs). This form calculates how much of the conversion is taxable. If the money you converted came entirely from contributions you made with after-tax dollars (money you did not deduct), the conversion is not taxable. If it came from pre-tax contributions or earnings, you owe income tax on that portion.

The tax is due when you file your return. You do not pay it when you do the conversion — you pay it the following spring. If you owe a large amount, you can make estimated tax payments during the year to avoid a big bill or penalties, but this is optional.

What happens if you have both pre-tax and after-tax money in traditional IRAs

If you have multiple traditional IRAs, SEP-IRAs, or SIMPLE IRAs, the IRS treats them as one account for tax purposes when you convert. This is called the pro-rata rule. It means if 80 percent of your total traditional IRA balance is pre-tax money and 20 percent is after-tax money, then 80 percent of any conversion you do is taxable.

You cannot pick and choose to convert only the after-tax portion to avoid taxes. The IRS calculates the taxable portion based on your total balance across all traditional IRAs as of December 31 of the year you convert.

If you have a 401(k) with pre-tax money and a traditional IRA with after-tax money, the pro-rata rule does not apply across the two account types — only within IRAs. So you could convert the after-tax traditional IRA without triggering tax on the pre-tax 401(k) money. However, if you roll the 401(k) into a traditional IRA and then convert, the pro-rata rule kicks in and applies to both accounts combined.

Converting from a 401(k) or employer plan

If the money is in a 401(k), 403(b), or other employer plan, the process is similar but you work with your plan administrator, not a bank or brokerage. Call the benefits or HR department and ask how to request a direct rollover to a Roth IRA. Some plans allow in-service conversions (converting while you are still employed), and some do not. If your plan does not allow it, you can convert after you leave the job.

The plan administrator will send the money directly to your Roth IRA custodian. This is called a direct conversion and is the cleanest route because the money never touches your hands. If the plan sends the check to you instead, you have 60 days to deposit it into a Roth IRA or it becomes a taxable distribution, and you may owe a 10 percent penalty if you are under 59½.

The tax treatment is the same as with an IRA conversion — you owe income tax on the full amount converted in the year you convert it.

Frequently Asked Questions

Do I have to convert my entire account, or can I convert just part of it?

You can convert any amount, from a few hundred dollars to the entire balance. You decide. If you are converting part of it, tell your institution the exact dollar amount or percentage you want moved. Converting in smaller amounts over several years can spread the tax bill across multiple years.

What if I do not have enough money to pay the taxes when I file my return?

You still owe the tax. You can set up a payment plan with the IRS if you cannot pay in full, or you can make estimated tax payments during the year to reduce the bill due at tax time. Some people convert a smaller amount to keep the tax bill manageable.

Can I undo a conversion if I change my mind?

No. Before 2018, you could undo a conversion through a process called a recharacterization. That option ended on December 31, 2017. Any conversion you do now is permanent, even if the account loses value or you regret the decision.

How long does it take to see the money in my Roth IRA?

Usually three to ten business days after you request the conversion. If your account holds mutual funds or other investments that need to be sold, it may take longer. Ask your institution for an estimate when you submit the request.

What if I convert in December — when do I pay the tax?

You pay the tax when you file your return the following spring, even if you converted in December. The conversion is reported on your 2024 tax return if you converted in 2024, and the tax is due by April 15, 2025 (or whenever your return is due).

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.