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Roth Conversion IRAs*

The goal in converting retirement assets to a Roth IRA is to reduce your tax liability when you take distributions in retirement, or taxes your beneficiaries will pay. You can convert assets in a Traditional IRA or any qualified eligible retirement plan to a Roth IRA. The amount you convert will be taxable in the year you complete the conversion. Be sure you have enough money from other sources to pay the taxes on the conversion. You may not pay the taxes using any of the converted funds, or you will have to pay an early withdrawal penalty (if under age 59½) on the amount you use to pay the tax.

Not all Roth conversions result in tax savings, so be sure to review your retirement savings strategy and your IRA strategy beforehand with your tax professional to be sure a Roth IRA conversion would be to your advantage.

There is no age requirement to begin distribution from a Roth IRA conversion, but taxable withdrawals made prior to age 59½ are subject to tax penalties. Distributions are also subject to the five-year holding requirement.

Western & Southern Life does not provide tax or legal advice. Please contact your tax or legal advisor regarding your situation.

*Source: Internal Revenue Service at


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Last Updated: 12/14/2017