Down market could be right time to convert IRA to Roth IRA

Markets are down, and accordingly so is the value of many IRA accounts.  This decline may be a window of opportunity to convert IRAs into Roth IRAs.  Tax will be due on the value of the IRA converted, but the current lower values mean a lesser amount of taxes be would due as a result.  Additionally, give the economic conditions, businesses may have diminished income, or even losses, that flow through to the owners’ personal tax return. With lower income levels, a Roth conversion becomes more attractive as there may be losses to absorb the taxable income of a conversion, or lower tax brackets may apply this year. 

You can still contribute to retirement accounts for 2019 until April 15, 2020.  Discuss with your ShindelRocktax professional whether this volatile market environment and your individual income situation may merit an IRA conversion to a Roth IRA at this point or sometime this year.