Anyone rolling IRA to a Roth now that market is down?

Discussion in 'Business, Investing & Finance' started by Bushmaster, Apr 1, 2020.

  1. Bushmaster

    Bushmaster Well-Known Member
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    It hit me a little late that I might consider doing this for 2020. I have the ability to manipulate my income and the timing is right for this.

    Also, with the passage that you can take up to $100,000 without the 10% penalty and pay the tax over 3 years, I have considered doing this and putting it into a Roth. I think the loophole will be closed on this one though. Some folks disagree that you can do this. I haven't read that closely on it but if it is allowed, expect that loophole to close.
     
  2. EyeDocGator

    EyeDocGator Politically Incorrect
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    I am rolling IRAs into Roth accounts. I've been doing it for a couple of years and will continue for a few more since I have huge charitable deductions that expire after 5 years. This puts me into the lowest bracket and decreases future taxes (God knows what the rate will be in a few years). I don't think the market being up or down is a factor for me.
     
  3. AugustaGator

    AugustaGator Junior Member
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    It will become taxable
     
  4. Bushmaster

    Bushmaster Well-Known Member
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    Huh?
     
  5. AugustaGator

    AugustaGator Junior Member
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    The government is going to rescind that law and make the gains taxable.
     
  6. no1g8r

    no1g8r Bringing Reason to the Masses
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    Unlikely anytime soon, but if they did, it is almost certain that existing contributions would be grandfathered in.
     
    • FireFoley

      FireFoley Senior Member
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      I do not see that happening. If that is the case, then there will be no such thing as a Roth. And as someone mentioned any gains made would be grandfathered in. If they tried to go after those gains, they would lose that case. Just think about how different many people invest in a Roth account vs. a tax deferred account.
       
      • BMF

        BMF Bad Mother....
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        I agree. And if they do, as no1 said, they'll grandfather those already in. If they do mess with it, they likely lower the amount you can contribute to it.
         

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