Converting to a Roth IRA Menu
What is a Roth conversion?
Why convert to a Roth IRA?
Converting a traditional IRA to a Roth IRA can be appealing for some investors because:
A Roth IRA conversion may make sense if:
What type of retirement accounts can I convert to a Roth?
In addition to traditional IRAs, accounts in qualified employer plans such as 401(k)s, 403(b)s, or governmental 457(b)s that are eligible to be rolled over may be converted a Roth IRAs.
When am I eligible for tax-free withdrawals?
To withdraw tax-free earnings, the Roth IRA must have been open for a minimum of five years and meet one of these criteria:
Will I owe taxes on my conversion?
Yes, any previously tax-deferred assets converted (such as a traditional IRA or a traditional employer plan) will be taxable as income. A conversion of after-tax amounts (such as a nondeductible contribution to a traditional IRA) will not be subject to income tax.
Do I need to convert all my assets at one time?
No. To help manage your tax liability, you may choose to convert just a portion of your assets. There is no limit to the number of conversions you can do, so you may convert smaller amounts over several years.
If you are an existing Wells Fargo Funds client and wish to complete a conversion, please complete and mail in the following forms:
Do you have questions about a Roth conversion? Call us at 1-800-359-3379.
Any tax or legal information on this website is merely a summary of our understanding and interpretations of some of the current income tax regulations and is not exhaustive. Investors should consult their tax advisor or legal counsel for advice and information concerning their particular situation. Wells Fargo Funds Management, LLC; Wells Fargo Funds Distributor, LLC; or any of their representatives may not give legal or tax advice.