Can I transfer my Traditional IRA to a Roth IRA?
No, you cannot directly transfer Traditional IRA funds at one institution to a Roth IRA at another firm. A Traditional IRA can be transferred into another Traditional IRA or SEP IRA. A Roth IRA can only be transferred to another Roth IRA. Click here for the IRS’s Rollover Chart.
However, there is the option to convert your Traditional IRA into Roth IRA funds (also known as a Roth Conversion). When you convert your Traditional IRA funds to Roth IRA funds you must pay taxes on the amount converted. Once converted, your Roth IRA funds can grow and be taken out tax-free.