What is a Roth or Conversion IRA?

A Roth Individual Retirement Arrangement (IRA) is one of the more recent investment options available to help individuals prepare for retirement. To open and contribute to a Roth IRA, customers must meet certain eligibility requirements set by the IRS, and the amount that can be contributed each year is limited.

Roth IRA contributions are made after-tax, but earnings are not taxed, and neither are eligible withdrawals.

Tip: Contribution limits indicate the total amount a taxpayer may annually contribute to their combined IRA accounts. For specific or tax-related questions about Roth IRAs, please consult a tax advisor and review IRS Publication 590.

A Roth Conversion IRA is an account that is used to hold assets converted from a Traditional or Rollover IRA.

Tip: The amount converted from a Traditional or Rollover IRA is subject to regular income taxes in the year of conversion. For specific or tax-related questions about Roth Conversion IRAs, please consult a tax advisor and review IRS Publication 590.