Faw Casson

Converting to a Roth Retirement Plan During COVID-19

June 23, 2020

One of the biggest benefits of converting a traditional retirement plan to a Roth IRA is that it can lower your taxes in the future. While there's no upfront tax savings with Roth IRAs, your earnings and contributions grow tax-free.
The full amount of the traditional IRA being taxable at the time of conversion has been a major deterrent for most people to pull the trigger on conversion, but if you’ve been considering it, now may be your best time to act. 
With the Coronavirus pandemic, the stock market has been devalued somewhat, causing traditional IRAs to be worth less than they may have been previously.  This means that the taxes on converting will be less for you too.   You can choose to convert the amount you want.  It does not have to be the total in your traditional IRA.

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