How Do I Convert My Traditional IRA to a Roth IRA?

Investor Account Help: Transactions

You can convert your Homestead Funds Traditional IRA to an existing Homestead Funds Roth IRA. Please be aware that you’ll owe taxes on any pretax Traditional IRA contributions that you convert. Conversion instructions must be received in good order by the last business day of the year the conversion is to occur.

Conversion instructions must be received in writing, signed by the shareholder. State specifically that you are requesting a conversion of assets from your Traditional IRA to your Roth IRA, the fund names and account numbers, the amount you would like to convert from each fund and account, and the amount you would like to have withheld for federal income tax. Tax withholding can be specified as a dollar amount or percentage, as long as the amount is not lower than 10% of the conversion. If you do not want income tax withheld you may indicate to withhold 0%. If you do not specify tax withholding, 10% will be withheld as a default.

Quick Note:
Traditional-to-Roth-IRA conversion instructions must be received by the last business day of the year the conversion is to occur.

To request a conversion, mail a Transaction Request Form to the address on the form or find it at Contact Us
Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.

Call us at 800.258.3030 if you have questions regarding the conversion requirements.


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