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      How to complete a USD Roth conversion for a Traditional IRA transfer?

      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 Normally, after conversion, at least 5 years must pass from the conversion date before the funds can be withdrawn without penalty.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:

      How to perform a USD Roth Conversion if the funds are with another custodian:

      1. Contact your current custodian to perform a Roth conversion. 
      2. Complete the steps for a Roth IRA-to-IRA transfer. 
      3. Once the funds arrive in your account, you can use them to purchase bitcoin.

      Tip: If your custodian cannot perform a USD Roth conversion, you must open an Unchained Traditional IRA and complete a Traditional IRA-to-IRA transfer before completing the USD Roth conversion steps below. 

      How to perform a USD Roth Conversion if the funds are in your Unchained Traditional IRA:

      Note: There is a $100 service fee for a USD conversion. If your funds are in bitcoin, see our guide on how to complete an in-kind (BTC) Roth conversion.

      1. Sign in to your Unchained account and navigate to your Roth IRA dashboard.
      2. Select the IRA cash balance tab and click FUND. 
      3. Click the IRA-to-IRA Transfer option. 
      4. Enter your Unchained email address and name. 
      5. Select IRA-to-IRA Transfer (USD Transfer).
      6. Select Roth as your Unchained IRA Account Type and whether it will be a Full or Partial transfer. 
      7. Enter Fortis Bank as the Releasing Custodian Name.
      8. Select Traditional for the tax status of the funds being sent. 
      9. Submit Form.
      10. Our IRA team will receive your responses and send you a funding form via DocuSign, typically within 1 business day. 
        1. Depending on your personal email settings, you may need to check your spam folders for the DocuSign form. 
      11. Sign and return the DocuSign. 
      12. Fortis Bank will perform the IRA conversion. The funds will arrive in your Roth IRA account, and you may use them to purchase bitcoin. 
      13. Done!

      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.