Heartland Advisors

Convert a Traditional IRA to a Roth IRA

Some investors may benefit from the tax advantages of a Roth IRA. You may be eligible to convert a traditional IRA to a Roth IRA, but you will be subject to taxation for the fair market value of the amount you convert.

If You Do Not Yet Have a Heartland Funds Roth IRA

  1. Complete the IRA application form and select Roth IRA in section two
  2. Complete the IRA distribution form (pdf) and select convert my traditional IRA to a Roth IRA in section two
  3. Mail both forms to one of the following:


    U.S. Postal Service
    Heartland Funds
    P.O. Box 219942
    Kansas City, MO 64121-9942

    Overnight Service
    For the overnight mailing address,
    please call Investor Services at
    1-800-432-7856

If You Have an Existing Heartland Funds Roth IRA

  1. Complete the IRA distribution form (pdf) and select convert my traditional IRA to a Roth IRA in section two
  2. Mail the form to one of the following:


    U.S. Postal Service
    Heartland Funds
    P.O. Box 219942
    Kansas City, MO 64121-9942

    Overnight Service
    For the overnight mailing address,
    please call Investor Services at
    1-800-432-7856

Traditional vs. Roth Comparison

 

Traditional IRA

Roth IRA

Contributions

Tax-deductible, subject to income limitations

Not tax-deductible

Earnings

Tax-deferred earnings

Tax-free earnings

Annual Contribution Limits

2020: $6,000, $7,000 if 50 or older

2021: $6,000, $7,000 if 50 or older

2020: $6,000, $7,000 if 50 or older

2021: $6,000, $7,000 if 50 or older

Eligibility

2020: Anyone under 70½ who has earned income

2021:No age or income restrictions

2020:

  • Eligible to Contribute up to the Limit: Individuals with adjusted gross income of less than $124,000 if filing as single, head of household, or married filing separately and did not live with a spouse at any time during the year; $196,000 if married and filing a joint return
  • Eligible to Contribute a Reduced Amount: Individuals with adjusted gross income of $124,000-$138,999 if filing as single, head of household, or married filing separately and did not live with a spouse at any time during the year; $196,000-$205,999 if married and filing a joint return; less than $10,000 if married filing separately and you lived with your spouse at any time during the year

2021:

  • Eligible to Contribute up to the Limit: Individuals with adjusted gross income of less than $125,000 if filing as single, head of household, or married filing separately and did not live with a spouse at any time during the year; $198,000 if married and filing a joint return
  • Eligible to Contribute a Reduced Amount: Individuals with adjusted gross income of $125,000-$139,999 if filing as single, head of household, or married filing separately and did not live with a spouse at any time during the year; $198,000-$207,999 if married and filing a joint return; less than $10,000 if married filing separately and you lived with your spouse at any time during the year

Federal Taxation on Withdrawals

Subject to income tax on earnings and deductible contributions

Distributions of contributions are tax-free and distributions of earnings are tax free if Roth IRA is held for at least five years and individual has reached age 59½; exceptions may exist if the distribution is due to death, disability, first-time home purchase, or post-secondary education

Distributions

Minimum distribution required after age 70½

None

 

Recharacterizing a Roth IRA Back to a Traditional IRA

Individuals who convert from a traditional IRA to a Roth are subject to taxation for the fair market value of the amount converted. Sometimes individuals may experience such a decline in value of their new Roth account that their account becomes worth less than what they paid in taxes.

If this is your experience, the IRS allows you to recharacterize the amount you converted back to a traditional IRA. Essentially, you are “undoing” your Roth conversion.

The recharacterization must be completed by October 15 of the year after you converted the account. You can then file an amended tax return to receive a refund of the taxes you paid on conversion.

Who to Contact with Questions

Contact the Shareholder Services Team at 800-432-7856, or send an email. The Team is available 8 a.m. to 7 p.m. CT, Monday to Friday.

Account Information

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Contact Us

©2025 Heartland Advisors | 790 N. Water Street, Suite 1200, Milwaukee, WI 53202 | Business Office: 414-347-7777 | Financial Professionals: 888-505-5180 | Individual Investors: 800-432-7856

Neither Heartland nor any of its representatives may give legal or tax advice. For guidance on a specific situation, investors should consult their tax adviser or legal counsel.

The Heartland Funds are distributed by ALPS Distributors, Inc.

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