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Does Wealthfront support Roth conversions?

Yes, if you currently have:

  1. a Wealthfront Traditional or SEP IRA

AND

      2. a Wealthfront Roth IRA

you can convert your funds from your traditional or SEP IRA into your Roth IRA through our website or mobile app.

At this time we only support “full conversions,” meaning we convert all of the funds in your traditional IRA to your Roth. You cannot convert just a portion of your traditional IRA.

To complete a Roth conversion:

  1. Log in to the website or mobile app
  2. Go to your traditional or SEP IRA account page
  3. Tap “Convert funds to Roth IRA” to get started

Roth conversions generally take 3-4 business days to complete because we sell any investments in your traditional IRA and transfer the proceeds to your Roth IRA. We typically sell any investments in your traditional IRA within 1 business day of your request.

Your traditional IRA will automatically be closed after your conversion is complete. If you receive dividends in your traditional IRA after this conversion, we’ll automatically convert those dividends to your Roth before closing your traditional IRA. You can always open a new traditional IRA.

Note: If you incur taxes during the conversion, you are responsible for all federal, state, and local taxes, including estimated tax payments and penalties, as Wealthfront does not withhold taxes.

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The information in this FAQ is provided for general informational purposes only and should not be construed as investment advice or a recommendation that you take a particular action. Wealthfront and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisor.

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