Converting to a Roth IRA

Can I convert my existing IRA to a Roth IRA?
All individuals have the option to convert all or part of their Traditional IRA assets to a Roth IRA. The conversion of assets from a Traditional IRA to a Roth IRA can only be done on a taxable basis. Therefore, ordinary income taxes must be paid on the portion of the "Traditional," or "regular," IRA that is taxable.

As part of the conversion, individuals will have to pay income taxes on the taxable amount, if any, of the Traditional RA converted to a Roth IRA. The taxable amount includes earnings plus deductible contributions. Additionally, they must decide whether or not to pay the income tax owed on the conversion with the proceeds of the IRA being converted or from another source. Rollovers must also be completed within 60 days of the distribution from the Traditional IRA.

The five-year period for which Roth IRAs must be held before qualified tax-free distributions can be made will apply separately to regular Roth IRA contributions, and to conversions or rollovers to Roth IRAs. Withdrawals from converted or rollover amounts within five years of the conversion or rollover are subject to a penalty tax, even if not taxable. As a result, it is strongly suggested that you avoid commingling regular Roth IRA contributions with conversion/rollover contributions in one tax year with similar contributions in different tax years. It is recommended that a separate Roth IRA be established for each year.

Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and the underlying investment funds. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses. Please read the contract prospectus or brochure and underlying fund prospectuses and summary prospectuses carefully before investing. The contract prospectus or brochure and underlying fund prospectuses and summary prospectuses can be obtained by mail or by calling 1-800-468-3785.

Mutual of America's IRAs are individual variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should carefully consider a variable annuity contract’s other features before making a decision.

Form IRA-2004 or applicable state variation.



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