Yes, you can convert your funds from your Wealthfront Traditional or SEP IRA into your Wealthfront 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 (from a funded Wealthfront Traditional or SEP IRA), log in to the website or mobile app.
- If you already have a Wealthfront Roth IRA, go to your traditional IRA account page and tap “Convert funds to Roth IRA” to get started.
- If you don’t yet have a Wealthfront Roth IRA, tap “Open new account” and select “Investing” -> "I'm saving for retirement" -> "Roth IRA" then select your traditional IRA as the account for funding.
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.
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.
Nothing in this communication should be construed as an offer, recommendation, or solicitation to buy or sell any security or a financial product. Any links provided to other server sites are offered as a matter of convenience and are not intended to imply that Wealthfront Brokerage LLC or its affiliates endorses, sponsors, promotes and/or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated otherwise.