The process will vary depending on the type of account you are converting.
- If you already have a Traditional IRA at Bank of America or Merrill Edge, a representative will help you open a Roth IRA and fill out the conversion form.
- If you have an IRA outside of Bank of America or Merrill Edge, a representative will help you transfer your Traditional IRA and assist you with the Roth IRA conversion.
- If you have assets in a 401(k) from a former employer, a representative will help you transfer your assets from your 401(k) and assist with the Roth IRA conversion
If you are at least age 70½, federal tax law requires the owner of a Traditional IRA or employer-sponsored retirement plan such as a 401(k) to begin taking a Required Minimum Distribution (RMD) each year. (The required beginning date may be later, depending on when the owner retires for employer-sponsored retirement plans.) In any year that an RMD is due, federal tax law considers the first distribution to contain the RMD. A Roth IRA conversion requires you to take the RMD before converting your account. Ineligible funds converted to a Roth IRA will be subject to an excise tax and will be required to be removed as excess. You should review any planned financial transactions or arrangements that may have tax or accounting implications with your personal professional advisors.