Are there fees that occur with a conversion?
Yes, a one-time conversion fee of $75 will occur once the conversion is completed. The fee will be charged to a credit card on file.
How will the fee be charged?
The fee will be charged to a credit card on file. Clients will be sent a link to add a credit card after their conversion has been completed.
How long does the conversion process take?
The conversion process will typically take around 1-3 business days from signing the conversion form.
When is a conversion necessary?
A conversion is required if you are moving pre-tax funds (i.e., Traditional, SEP, or Simple) into a post-tax Roth IRA.
How would I request a conversion?
If you are transferring or rolling over a pre-tax account into an iTrustCapital Roth IRA, the conversion process will start once you complete your account application. If you have a Pre-taxed account with iTrustCapital and want to convert it into your Roth IRA, please submit a request under "Account Funding" and select "Traditional to Roth Conversion." After submitting your request, a representative will reach out with more information on how to proceed with the conversion.
Are there tax penalties when converting an account?
You may be subjected to a tax penalty while converting; please speak with your CPA or tax advisor on the details of the conversion process.
Can I convert my inherited IRA?
No, converting an inherited IRA is not possible unless you are inheriting from a deceased spouse. Once you move your spouse's account into your personal IRA, then you can convert it into a Roth IRA.
Can I convert my funds in-kind?
Yes, when submitting your request, please provide the exact quantity of assets you like to be converted in-kind.
**Disclaimer - This article is for information purposes only. Suitability questions should be directed at your tax or financial professional.