What is a Roth conversion?
A Roth conversion is when money is moved from a traditional IRA, 401(k), or another pre-tax retirement account into a Roth IRA. Since these account types are taxed differently, converting means the money will be treated as Roth funds going forward.
Why would someone consider a Roth conversion?
Roth IRAs grow tax-free: Once funds are in a Roth IRA, any future growth and qualified withdrawals are not taxed.
No required minimum distributions (RMDs): Unlike traditional IRAs, Roth IRAs do not require you to withdraw money at a certain age.
Flexibility in retirement: Some investors prefer the option of having both pre-tax and Roth savings for future planning.
How does it work?
When you convert, the amount moved is counted as taxable income in the year of the conversion. This means many people plan carefully for when and how much to convert.
Can I convert all or part of my account?
Yes. A Roth conversion can be done with your full balance or just a portion. Some investors choose to convert gradually over time.
Things to keep in mind
A Roth conversion is permanent — once completed, funds cannot be moved back into a traditional IRA.
Different retirement accounts may have different rules around eligibility for conversions.
Whether or not a conversion makes sense depends on your individual circumstances.
Important note
This information is for educational purposes only and is not tax or financial advice. If you’re considering a Roth conversion, you may want to consult a qualified professional. If you are interested in a Roth conversion for your Public account, please contact Member Support via the in-app chat or email at support@public.com.