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      How to complete an In-Kind Roth conversion for your Unchained IRA

      A Roth conversion changes your Traditional IRA funds from pre-tax status to after-tax Roth status.

      Your current custodian may be able to convert to Roth tax status for you. If your custodian cannot perform an in-kind Roth conversion — or you prefer to do it at Unchained — follow the steps in this article.

      The funds moved into the Roth IRA are taxable income in the year of the conversion. Assuming requirements are met, Roth conversions are generally not subject to the 10% early withdrawal penalty. Normally, after conversion, at least 5 years must pass from the conversion date before the funds can be withdrawn without penalty.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 converting to a Roth IRA, consult your accountant, financial advisor, or other tax professional about the tax implications for your situation.

      Note: There is a $250 service fee for each in-kind conversion. If your funds are in USD, see our guide on how to complete a USD Roth conversion.

      What you’ll need:

      • Two IRA accounts: You must have both an Unchained Traditional IRA and an Unchained Roth IRA to complete the conversion.
      • Your Unchained IRA account numbers: These are your Fortis IRA account numbers and can be found on the main page of your IRA accounts.
      • BTC vaults required: You need a BTC vault for both your Traditional IRA and Roth IRA. The annual vault fee is $250 per year, and is free for the first year.

      Initiate the in-kind conversion paperwork

      1. If your bitcoin is held at another custodian, initiate a Traditional IRA-to-Traditional IRA transfer to bring the BTC into your Unchained Traditional IRA vault.
      2. Complete the Roth Conversion Request Form to let us know the type of conversion (in-kind) and the amount to convert. Our IRA team will send you a funding form via DocuSign typically within 1 business day. We will also send a Stripe payment link for the $250 Roth conversion fee.
        • Tip: Check your spam or junk folders if you don’t see the DocuSign email.
      3. Pay the conversion fee.
      4. Return the DocuSign form unsigned with the exact BTC amount you want to convert. Once approved, the IRA Operations team will send you an email confirmation to proceed with the in-kind transfer of bitcoin from your Traditional IRA vault to your Roth IRA vault.

        Move Bitcoin from the Traditional IRA Vault to your Roth IRA Vault

      5. Navigate to your Roth IRA vault page, click Deposit, and select show deposit address. Copy that address shown on the screen.
      6. Navigate to your Traditional IRA vault page and select Withdraw. Proceed through the warning screen, and paste your Roth IRA deposit address that you just copied.
      7. Create the transaction, sign with your keys, and broadcast. If you need help with this step, please review our article How do I withdraw from my vault?
      8. Unchained will email you the form via DocuSign for your final e-signature to confirm the amount and value of the bitcoin that was sent. This completed document will be provided to Fortis Bank for tax reporting purposes.

      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.