Taxes
4 months ago
Should I convert my Traditional IRA to Roth during a market downturn?
31
The market is down about 18% and my $200k Traditional IRA is now worth about $164k. I'm considering doing a Roth conversion now while the value is depressed. My thinking: I pay tax on $164k instead of $200k, and when the market recovers, the growth happens tax-free in the Roth. Is this a legitimate strategy? I'm in the 24% bracket — the conversion would add about $39k to my taxable income. Worth it?
DR
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