ROTH IRA CONVERSIONS IN A DOWN MARKET

Is it time for a break - that is a tax break?  With the stock market down 25-40% from its fall 2007 highs, it's certainly a time to consider converting your traditional IRA to a Roth IRA.

The pros of a Roth conversion. A Roth IRA gives you two huge benefits: tax-free growth and tax-free income distributions in retirement (providing you are age 59½ or older and have held your Roth IRA account for 5 or more years).⁴ Additionally, you can still contribute to a Roth IRA after age 70½ - and you don’t have to take mandatory withdrawals from it.⁵ These facts alone might motivate you, especially if you are in your thirties or forties.

A Roth IRA conversion can also be useful for older investors who don’t need their IRA assets. If you don’t think you’ll need to tap your IRA, you might consider doing a Roth conversion and leaving the Roth IRA to your heirs. Untouched, those Roth IRA assets can keep compounding tax-free across the rest of your life (and subsequently, the rest of your surviving spouse’s life). Here’s another advantage: converting that untapped traditional IRA to a Roth will lower your taxable estate.⁶

Read More on Roth Conversion Strategies. . .

2009 MQBTF Charity Golf Scramble presented by Kiper Retirement Consultants

 September 28, 2009

 Uncontested Winners: BWA South, Ron Flora, Dean Samsil, Heath Martin & Mike Ryan 

 Sponsorship Opportunities still available!

Registration Brochure

Register on line

 Recomended Articles

Bill Gross The Future of Investing

Market Valuations Vs. Real Returns

Back to The Basics:  Three Rules

2009 Roth/IRA Contribution Limits

2009 Qualified Plan Contribution Limits

NEW LINKS for College Funding:

Comparision of College Funding Methods

9 Questions that people ask about saving for college.