Can you transfer a traditional ira to a self directed roth ira?

[Chris H.]

Is it possible to transfer traditional ira funds to a self directed roth ira?

Thanks for your help!

[Dmitriy Fomichenko]

@Chris H.

Yes, it is possible to move your traditional IRA into self-directed Roth IRA. It is actually called a "conversion", which is taxable event since you are converting pre-tax dollars that you contributed to a traditional IRA into Roth IRA, which is after tax. So to be sure to consult with your tax advisor to make sure you understand the tax implications. Overall it is a good strategy, pay tax on the seed, not the harvest.