Can I convert my Traditional IRA to a Roth IRA?
You may convert all or a portion of your Traditional or Spousal IRA to a Roth IRA provider.
If you convert or rollover your IRA to a Roth IRA, you must include in your gross income any amount which would be included if it were not part of a rollover contribution (the amount of your deductible IRA contributions plus earnings on your IRA contributions which are included in the distribution and rolled over to a Roth IRA).
Conversions or rollovers must be included in gross income for the year of the conversion or rollover. The 10% premature penalty tax does not apply to any amount converted to a Roth IRA.