{"id":6329,"date":"2023-01-13T12:00:00","date_gmt":"2023-01-13T16:00:00","guid":{"rendered":"https:\/\/www.whitcomb.com\/?p=6329"},"modified":"2023-02-01T12:26:55","modified_gmt":"2023-02-01T16:26:55","slug":"roth-ira-conversions-in-a-down-market","status":"publish","type":"post","link":"https:\/\/www.whitcomb.com\/blog\/2023\/01\/13\/roth-ira-conversions-in-a-down-market\/","title":{"rendered":"Roth IRA Conversions in a Down Market"},"content":{"rendered":"\n
While many investors saw their account values drop in 2022, there may be a silver lining. Perhaps this is an opportunity to do a Roth Conversion.<\/p>\n\n\n\n
First, what\u2019s the difference between a Traditional IRA and a Roth IRA?
Both types of IRAs are designed to help you save for retirement while providing tax-favored treatment. Essentially, the difference is when your funds are taxed: before they go in, or when they come out.<\/p>\n\n\n\n
A Roth conversion is where those pre-tax dollars from a Traditional IRA are moved to a Roth IRA to continue to grow. This is taxed in the year you make the conversion, as part of your income. So, while no one likes to see their IRA value decrease, a down market presents a unique opportunity for a Roth conversion. Since you pay tax on any amount converted, you will owe taxes on a smaller amount if you make a conversion during a down market. Plus, the funds that you convert will now be in an account that benefits from tax-free growth.<\/p>\n\n\n\n
You may want to consider a Roth Conversion if you:<\/strong><\/p>\n\n\n\n As with many financial strategies, the Roth conversion isn\u2019t one-size-fits-all, but it could provide substantial benefits for the right scenario. We have the tools and expertise to help you sort through this decision. Please contact us if you\u2019d like to see if this is a good time for you to consider a Roth conversion.<\/p>\n","protected":false},"excerpt":{"rendered":" While many investors saw their account values drop in 2022, there may be a silver lining. Perhaps this is an opportunity to do a Roth Conversion. First, what\u2019s the difference between a Traditional IRA and a Roth IRA?Both types of IRAs are designed to help you save for retirement while providing tax-favored treatment. Essentially, the […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[46],"tags":[253],"acf":[],"_links":{"self":[{"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/posts\/6329"}],"collection":[{"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/comments?post=6329"}],"version-history":[{"count":1,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/posts\/6329\/revisions"}],"predecessor-version":[{"id":6330,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/posts\/6329\/revisions\/6330"}],"wp:attachment":[{"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/media?parent=6329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/categories?post=6329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/tags?post=6329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n