Video Overview
This 2019 demonstration uses Charles Schwab to show how Traditional IRA assets were converted online to a Roth IRA; other brokerages may use different steps. From the IRA, the speaker opens Account Services and Forms, selects the conversion form, and confirms the source Traditional IRA and destination Roth IRA. A conversion may cover the full account or only part of it. For a partial conversion, the form requests the number of shares from each holding and uses the market price to estimate the converted amount. The final screen addresses federal and state tax withholding. In the speaker's example, tax is not withheld from the transferred assets and is instead paid with funds outside the retirement account. The interface and tax rules may have changed, so this page is neither a current Schwab procedure nor tax advice.
Key Takeaways
- The demonstration finds the Roth conversion form through Account Services and Forms in the Traditional IRA.
- The form requires a source Traditional IRA and a destination Roth IRA.
- The account and tax situation determine whether the conversion is full or partial; the video uses a partial example.
- A partial conversion enters share quantities for stocks or funds and estimates the converted amount.
- The example does not withhold tax from the converted assets; current rules and personal circumstances require separate confirmation.
Chapters
About 00:00:00 · Scope of the Schwab Roth conversion example
Charles Schwab is the example, and other brokerages may have different procedures.
About 00:01:15 · Finding the online form
The conversion form is opened from Account Services and Forms in the Traditional IRA.
About 00:02:35 · Source and destination accounts
The user confirms the Traditional IRA sending assets and the Roth IRA receiving them.
About 00:04:05 · Full or partial conversion
The two choices are compared, followed by an example entering shares for a partial conversion.
About 00:06:10 · Tax withholding
The ending reviews federal and state withholding and the use of outside funds for taxes.
Related Topics
Charles Schwab, Traditional IRA, Roth IRA, Roth conversion, retirement account conversion, partial conversion, share quantities, tax withholding, U.S. retirement taxation
This page was prepared with AI from selected portions of the video's audio to help readers understand the main topics. It may omit secondary material or contain transcription errors; the original video remains authoritative.
