What is a "backdoor" Roth conversion?

A Roth Conversion is transferring a balance from a Traditional IRA into a Roth IRA. Roth conversions are especially common for those with high incomes that exceed the IRS income limits to contribute into a Roth IRA.

*There are No income limits for Roth Conversions

** IRS Roth IRA contribution income limit - Link

Reasons for doing a Roth Conversion

  • Take advantage of tax-free growth & withdrawals in retirement

  • Roth IRA’s aren’t subject to RMD rules. Account continues to grow tax-free

  • Ability to lower taxable income in retirement

Roth Conversion Deadline
End of Calendar year - December 31st

*Per the Tax Cuts and Jobs Act in 2018, a Roth Conversion cannot be reversed, or recharacterized.

Roth Conversion - Tax Impact

All pre-tax amounts converted are reported as ordinary income in the year the conversion occurred.

Roth Conversion - Tax Forms

  • Form 1099-R - Apex reports the distribution from the Traditional IRA, showing the amount converted as taxable income. (Delivered in January/February)

  • Form 5498 - Apex reports the funds received into the Roth IRA. (Delivered in May/June)

Ready to get started?

Please follow our easy steps below:

  1. Open both, a Traditional IRA and a Roth IRA via the app, if you haven’t done so already. (Click Account tab >> Account >> Open a new account)

  2. Fund your Traditional IRA

  3. Let us know the amount you'd like to convert by reaching out to us via chat or support@titanvest.com

Nothing else is required on your end. We'll work with Apex, our broker-dealer, in processing your Roth conversion.

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