- The SECURE 2.0 Act pushed the RMD start age to 73, and IRS rules govern Roth and Traditional IRA conversions.
- Roth conversion rolls funds into Roth IRA.
Market Downturns Offer Strategic Tax Planning Opportunities via Roth Conversions
1 report, 1 independent
Updated Sep 22
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What happened
A market downturn creates a scenario where investors can execute a Roth conversion at a lower tax cost. A Roth conversion involves moving funds from a pre-tax account, such as a traditional IRA or 401(k), into a Roth IRA. The tax owed is based on the amount being converted in that year.
From moneytalksnews.com
Why it matters
This strategy allows investors to take advantage of lower account valuations when making the conversion. After the funds are in the Roth IRA, they grow tax-free, and qualified withdrawals are tax-free, with no required minimum distribution clock.
The SECURE 2.0 Act pushed the required minimum distribution age to 73, and IRS rules govern how Roth and Traditional IRA conversions are handled.
From moneytalksnews.com