A Roth IRA conversion is one where a customer takes pre-tax funds from a Traditional IRA and moves them into a Roth IRA.
The amount of funds moved into the Roth IRA are added to the customer's tax return as taxable income in the year of the conversion. Assuming relevant legal requirements are met, Roth conversions are generally not subject to the 10% early withdrawal penalty, only income tax. Normally, after conversion, at least 5 years must pass from the conversion date before the funds can be withdrawn without penalty.
If you're considering performing a Roth IRA conversion, consult your accountant, financial advisor, or other tax professional about the tax implications for your situation.
What you’ll need:
- An Unchained Roth IRA
- Creating a vault is not required. You can upload keys and build a vault at your convenience.
How to complete an in-plan Roth conversion:
- Contact your current plan administrator to perform an in-plan Roth conversion.
- Complete the steps for a Roth-to-Roth Employer Plan Rollover.
- Once the funds arrive in your account, you can use them to purchase bitcoin.
If your current plan administrator cannot complete an in-plan Roth conversion:
- Apply for an Unchained Traditional IRA.
- Complete the steps for a Traditional-to-Traditional Employer Plan Rollover.
- Follow the guide on how to complete a USD Roth conversion for a Traditional IRA transfer.
Note: No contents of this article may be relied upon as tax, legal, or financial advice, as they have not been tailored to you and have not been reviewed by any attorney, financial advisor, or tax professional. For any questions related to your own specific situation, please consult with your own attorney, tax professional, and/or licensed financial advisor.