Find out if you can convert your traditional IRA into a Roth IRA — and whether this is a smart move for you.

Some time ago, the Wall Street Journal reported that only a small percentage of people who are eligible to convert traditional IRAs to Roth IRAs — and who would benefit from such a conversion — have done so. In a subsequent column, Jane Bryant Quinn commented, "That's too bad. Roths can be a terrific deal, for the right people." If you haven't made the move yet, you're in good company. But now it's time to get serious, so you don't let a golden opportunity slip through your fingers. Here's step-by-step guidance.

Conversion Preliminaries
Visit this page to get the basic background information you need before you begin making your decision to convert (or roll) your traditional IRA to a Roth IRA.

Conversion Eligibility
Make sure you're eligible for a conversion or rollover before investing a lot of time on whether it's something you want to do.

Conversion Rule Changes
Recent tax laws make it easier to qualify for a Roth IRA conversion, but some of the changes haven't taken effect.

Partial Conversion
This page explains why you might want to consider a partial conversion of your traditional IRA.

Advantages of Conversion
Here are the reasons many taxpayers will benefit from a Roth IRA conversion.

Disadvantages of Conversion
The other side of the coin: conversion isn't the best choice for everyone.

Conversion Consequences
Here's a description of the tax consequences of converting your traditional IRA to a Roth IRA.

How Much Conversion Tax
You should have a reasonable idea how much a conversion will cost before you decide to move forward. Here's how to estimate the tax cost — and how to refine your estimate.

Source of Funds for Conversion Tax
An important point on your conversion decision checklist: where will the tax money come from? The answer may affect your decision to convert.

Timeline for Using Your IRA
Another important question: how long will your money remain in the IRA following conversion? This question, too, affects your decision.

Periodic Payments
Technical issues for people who want to do a conversion after they begin receiving periodic payments from their traditional IRA.

Related

• Buy the book: Go Roth!
• IRS forms and publications: Your Work and Retirement
• Discussion forum: Retirement Savings and Benefits
• Related guide: Guide to the Roth 401k
• Up one level: Guide to the Roth IRA