The wild ride continues! As we have addressed before, the nasty trifecta of oil, China and the Fed continue to hammer the markets. Moments like these can make or break portfolios and dramatically impact your future goals. Most investors have an IRA that they either have been funding or perhaps a rollover IRA from a previous 401(k) that sits on the sidelines and they periodically, if ever, look at. Volatile markets like this present an opportunity with these IRAs that could prove to be very advantageous!
“It’s almost like a half-off sale. If your IRA has dropped significantly in value, not only will the cost (of converting to a Roth IRA) be minimal, all the upside will be tax-free. Now is the time to strike!” – Ed Slott, The IRA Advisor
***Before we dive into the specifics of converting an IRA it is important to note that we encourage you to consult your CPA or Tax Advisor to discuss in detail. We are not tax advisors and (unless you are a client) we do not know your specific financial or tax situation.***
The decision about converting an IRA to a Roth IRA comes down to three key factors: taxes, cost and time. Continue reading →