Considerations for a Roth IRA conversion
- Roth IRAs have no distribution requirements.
- You may potentially reduce or eliminate the taxes your beneficiaries will have to pay after inheriting.
- When converting to a Roth IRA, a key consideration is whether to pay taxes now in order to provide tax-free income potential in the future.
For assistance, call 877-200-5503.
Are you moving money from another source?
Roll over a 401(k)
A Rollover IRA is one of several options to consider for your former workplace retirement plan, such as a 401(k).
Convert your T. Rowe Price Traditional IRA to a Roth IRA
Transfer an existing IRA
To simplify your finances, you can consolidate assets by transferring an existing IRA account to T. Rowe Price.
The principal value of the Retirement Funds and Target Funds (collectively the "target date funds") is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the fund. If an investor plans to retire significantly earlier or later than age 65, the funds may not be an appropriate investment even if the investor is retiring on or near the target date. The target date funds' allocations among a broad range of underlying T. Rowe Price stock and bond funds will change over time. The Retirement Funds emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus on supporting an income stream over a long-term retirement withdrawal horizon. The Target Funds emphasize asset accumulation prior to retirement, balance the need for reduced market risk and income as retirement approaches, and focus on supporting an income stream over a moderate postretirement withdrawal horizon. The target date funds are not designed for a lump sum redemption at the target date and do not guarantee a particular level of income. The key difference between the Retirement Funds and the Target Funds is the overall allocation to equity; although they each maintain significant allocations to equities both prior to and after the target date, the Retirement Funds maintain a higher equity allocation, which can result in greater volatility over shorter time horizons.
*20 of our 36 Retirement Funds had a 10-year track record as of 6/30/16 (includes all share classes). All 20 of these 20 funds (100%) beat their Lipper averages for the 10-year period. 8 of 36 (22.22%), 36 of 36, and 36 of 36 of the Retirement Funds outperformed their Lipper average for the 1-, 3-, 5-year periods ended 6/30/16, respectively. Calculations are based on cumulative total return. Not all funds outperformed for all periods. (Source for data: Lipper Inc.)