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IRA Conversion to a Roth Account

Use this page to perform a full conversion from your Traditional, Rollover or SEP IRA account to an IB Roth IRA account. In a full conversion, all assets in your Traditional or SEP IRA account are transferred to your Roth IRA account.

The following rules and procedures apply to IRA conversions:

If you are opening a new account for the purpose of doing an IRA conversion or recharacterization, you should select the funding option IRA Conversion or Recharacterization in the Funding section of the account application.

To perform an IRA conversion to an IB Roth IRA account

  1. Log into Account Management for the Traditional or SEP IRA account you want to convert.
  2. Click Manage Account > Settings > IRA > IRA Conversion to Roth Account.
  3. In the Transfer Method list, select IRA Conversion - Transfer Assets to Roth Account.
  4. Enter the username, password and account ID of the Roth IRA account to which you want to convert your Traditional, Rollover or SEP IRA account, then click Continue.
  5. A confirmation number is sent to your email address of record. Enter the number on the next screen, then click Confirm.

    If you did not receive a confirmation number, click Request Confirmation Number to receive a new confirmation number.
  6. Be sure to read and understand the important rules governing IRA conversions before you make your Federal and State Income Tax withholding elections.

Enter your Federal Income Tax withholding rate or elect not to have Federal Income Tax withheld. The tax rate is a percentage of your total account equity. Click the appropriate radio button to indicate your choice.

  1. On the same screen, enter your State Income Tax withholding rate or elect not to have Federal Income Tax withheld. The tax rate is a percentage of your total account equity. Click the appropriate radio button to indicate your choice.
  2. Click Continue. The status of your request appears on the screen.