Can i transfer stocks from individual account to roth ira

Converting your traditional IRA to a Roth IRA

Learn about the potential benefits of a Roth IRA and how to take advantage of them if you have assets in a traditional IRA

Table of Contents Show

Converting your traditional IRA to a Roth IRA
Determining if a Roth conversion is right for you
Considerations for owners of Roth IRAs
If you already have a Vanguard Roth IRA
Convert only Vanguard mutual funds from your traditional IRA
Convert investments from your traditional IRA brokerage account
If you want to open a new Roth IRA
Is your traditional IRA at another company?
We're here to help
Open your IRA today
Open your IRA today
Can you transfer an individual account to a Roth IRA?
Can I transfer stocks from individual account to IRA?

It's generally a good idea for most investors to consider including a Roth IRA in their overall retirement planning. Investments in your Roth IRA have the potential to grow tax-free, which may help you save more over time. Plus, Roth IRAs don't have required minimum distributions during the lifetime of the original owner, and Roth IRA assets may pass to your heirs tax-free.

Determining if a Roth conversion is right for you

Ready to get started?

Roth Conversion Checklists
Follow these simple steps to convert your Traditional IRA or old 401(k) to a Roth IRA.

Anyone can convert their eligible IRA assets to a Roth IRA regardless of income or marital status. Prior to 2010, only those account owners who had a modified adjusted gross income below $100,000 were eligible to convert.

Despite its advantages, Roth may not be the preferred option for all investors. There are three important factors—taxes, time, and costs—that you should consider before you decide if conversion is right for you. Fidelity's Roth IRA FAQs can help you weigh these factors and get answers to important questions you may have. Be sure to consult with your tax advisor with regard to your personal circumstances.

To learn more about the differences between Roth and traditional IRAs and get a quick overview of eligibility and features, use the Compare Roth and Traditional IRAs.

It's also important to note that if you are required to take a required minimum distribution (RMD) in the year you convert to a Roth IRA, you must do so before converting.

Considerations for owners of Roth IRAs

Distributions from a Roth IRA are qualified, and thus tax-free and penalty-free, provided that the 5-year aging requirement has been satisfied and at least one of the following conditions has been met:

You reach age 59½
You pass away
You are disabled
You make a qualified first-time home purchase

All other distributions are non-qualified. Non-qualified distributions of converted balances are not taxed again (since they were taxed when converted), but they may be subjected to a 10% penalty unless it's been at least five years since the beginning of the year of your conversion, you've reached age 59½, or one of the other exceptions applies.

RMDs are not required during the lifetime of the original owner of a Roth IRA. RMD amounts are not eligible to be converted to a Roth IRA.

Planning for retirement

You can convert a Vanguard traditional IRA to a Vanguard Roth IRA in a few easy steps.

If you already have a Vanguard Roth IRA

The steps you follow depend on what types of accounts you have and the types of investments you want to convert.

Convert only Vanguard mutual funds from your traditional IRA

Begin the exchange process online (logon required)

Convert investments from your traditional IRA brokerage account

If you hold ETFs (exchange-traded funds), individual stocks and bonds, or other investments in a Vanguard traditional IRA brokerage account …

Start at your balances and holdings (logon required)

Then locate the traditional IRA you want to convert and click Convert to Roth IRA.

IS A ROTH IRA CONVERSION RIGHT FOR YOU?

Understand the benefits of a Roth conversion

If you want to open a new Roth IRA

You need to have a Vanguard Roth IRA already set up in order to receive converted assets. So there are a few extra steps.

Begin the process to open an account online

When asked to select your funding method, choose Exchange and then follow the remaining instructions.

If there's more than one Vanguard mutual fund in your traditional IRA, you can only exchange one fund when you first open the Roth IRA. Once the account is set up, you can exchange the remaining funds by following the instructions in the section above.

Is your traditional IRA at another company?

Move it to Vanguard first and then return to the steps above.

Find out how to transfer an IRA to Vanguard

Open your IRA today

All investing is subject to risk, including the possible loss of the money you invest.

The amount you convert to a Roth IRA isn't subject to the 10% penalty that's charged on traditional IRA withdrawals taken before you reach age 59½.

You may wish to consult a tax advisor about your situation.

Can you transfer an individual account to a Roth IRA?

Converting to a Roth IRA is easier than ever. You can transfer some or all of your existing traditional IRA or employer-sponsored retirement account balance to a Roth IRA, regardless of your income. Once the conversion is complete, congratulate yourself. You've just signed on for years of tax-free growth.

Can I transfer stocks from individual account to IRA?

For asset transfers involving assets that you hold outside of a retirement account, such as in a regular taxable brokerage account or taxable mutual fund account, you're not allowed to do an in-kind transfer to an IRA.