Roth IRA’s – Turn the Bad Market to Your Advantage
Thinking of converting your traditional IRA to a Roth IRA?
One advantage of this downturn in the market may be to convert your traditional IRA to a Roth IRA. Remember that you only pay tax on the value at the date of conversion (less your after tax contributions).
Did you already convert your traditional IRA to a Roth IRA in 2010?
If so you may still change your mind until October 17, 2011, even if you already filed your 2010 tax return. If the value of your Roth IRA has decreased since the original conversion, you should consider reversing back to a traditional IRA. After waiting 30 days, you may again convert the presumably lower value to a Roth IRA.
The rules for Roth IRA conversions and reversals are complex. Please contact your LMGW advisor before taking any action.
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