Upbeat music plays throughout.
Narrator: Circumstances can change and, for some investors, that might mean a decision to convert funds from a traditional individual retirement account, or IRA, to a Roth IRA.
There are a few steps to take on Schwab.com, so this'll cover how to open a Roth IRA, converting traditional IRA funds to a Roth account, and other factors to consider.
Animation: The schwab.com client account summary page appears on the screen.
On-screen text: For Illustrative Purposes Only.
Narrator: If you haven't already opened a Roth IRA account, log in to Schwab, select Accounts, then Open an Account. Select Roth IRA, and follow the instructions.
Animation: The schwab.com client account summary page appears on the screen.
Narrator: Once your Roth IRA account is open, navigate to Transfer & Pay. Then click Transfer Funds.
Select the traditional IRA account to transfer cash or positions from. Then select the Roth IRA account to transfer to.
Read through any disclosures.
Then, enter the amount to transfer to the Roth IRA. Choose whether this will be a one-time or recurring transfer and select the transfer date. Select Continue.
Next, review the details of the transaction and select a distribution. Then, enter a federal and, if applicable, state tax withholding rate. To ensure you understand potential tax and distribution implications, consider consulting with a tax advisor.
After you've reviewed the details, select Continue.
Review the details of the transfer and carefully note the total value of the conversion for tax purposes. Then review the Terms and Conditions and, if you agree, check the box. Finally, select Submit. Depending on your jurisdiction, additional steps and forms may be required.
Visit schwab.com/howtocenter for more videos.
On-screen text: [Schwab logo] Own your tomorrow®
