conversion
A conversion is when you move money from one type of retirement account to a different type, like switching funds from a traditional IRA to a Roth IRA. This can trigger taxes depending on how the money was originally saved.
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Words beside it
- Conversion (Roth)
Moving money from a traditional account to a Roth and paying tax on it now.
- Tax conversion
A tax conversion is when you move money from one type of retirement account to another type, which can trigger a tax bill in the year you do it because the rules between the two accounts are different.
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