You’ve decided converting or moving a portion of your Traditional IRA into your Roth IRA is the right thing to do. You’ve calculated how much to move and you know you want to do it now. So just do it.
What? You say you don’t know how? No problem. Just call your broker, mutual fund company or your discount broker’s customer service department and ask for their instructions.
My discount broker is USAA Investment Management Company. The first time I moved money from my IRA to my Roth I called USAA Customer Service; they guided me to the right place on their web site to download the proper form.
Next, I filled out the form specifying the precise securities I wanted to move and signed it.
Then I faxed the form to the phone number shown on the form. Daily for the next two days, I checked both accounts on-line – the transaction concluded on the second day.
The really good part came next. After establishing and documenting the process that first time, USAA has allowed me to give verbal instructions by telephone to their customer service representative. It’s really a snap.
When I move my wife’s money from her Traditional IRA to her Roth it’s a bit more complicated but not too much more. The first Roth conversion I did for Linda was identical to my own first conversion. I downloaded the form, filled it out and had Linda sign it. Then I faxed it to USAA. That was last year.
This year, after I instructed the customer service representative on making my Roth conversion I told her that I also wanted to make a conversion for my wife’s account. She told me she could do it over the phone if we could conference in Linda for a three-way call. I called Linda while the rep waited on the line and when Linda joined the called she told the representative that I was authorized to do the Roth conversion transaction for her.
Linda then dropped off the call and I instructed the USAA Customer Service Representative on which of Linda’s IRA securities we wanted to move to her Roth.
The next day it was done. Your broker or mutual fund company will have a different process and nobody beats USAA customer service. Nevertheless, your broker’s process will probably be similar.
Once you’ve decided to make the move and determined how much to move and then selected the specific securities to move – the mechanics of actually making the move are really pretty easy.
Link to Other topics in the Special Report: Converting to a Roth IRA