Roth IRA conversions and recharacterizations

IRA owners may convert a traditional IRA to a Roth IRA under certain circumstances without any penalties.

Please note that Form 1099-R combines all IRA distributions during the year attributable to a single mutual fund, including each Roth IRA conversion and any recharacterizations. In order to prepare your taxes, you will need to know what portion of that combined total represented each transaction. For a more detailed summary of your IRA account activity, please refer to your year-end account statement. If you need a copy of your year-end statement, please call the Shareholder Service Center at 800 523-1918 weekdays 8:30am through 6:00pm ET.

For more help with Roth IRA conversions, please see IRS instructions for Form 8606.

Retirement planning provisions

The annual contribution limits for both traditional and Roth IRAs are listed below:

  Contribution limit Age 50 and older
2023 $6,500 $7,500
2024 $6,500 $7,500
After 2024 Indexed for inflation Indexed for inflation

The information contained in the Tax Center is not intended to be legal or tax advice. If you need assistance preparing your tax return, please consult a tax advisor.

Information may be abridged and therefore incomplete. Any discussion pertaining to taxes in this communication (including attachments) may be part of the promotion or marketing of a product. Advice (if any) related to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Individuals should seek advice based on their own particular circumstances from an independent tax advisor.

Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.

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