On the May 21st Your Safe Money Show we talked about converting to a Roth IRA. Here's a snippet from that show: When you trigger a Roth conversion, you’ll be responsible for paying the tax due on any pre-tax contributions or earnings within the traditional IRA. The benefit here is that if the market has dropped, it’s likely that your IRA value has dropped along with it – so your full value has gone down, and you’ll be paying taxes on the current value (which is lower, due to the market being down). So, in theory, you can convert a larger portion of your IRA in a down market and pay less in taxes than you could in years when the market is up.
To hear the more about Roth conversions go to yoursafemoneyshow.com at the podcast page.
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