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
    Lifetime Member

    Joined:
    Jul 27, 2018
    Messages:
    1,746
    Oxbucks:
    $2,775
    Ratings:
    +3,276 / -174
    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
    Lifetime Member

    Joined:
    Oct 26, 2015
    Messages:
    3,065
    Oxbucks:
    $6,700
    Ratings:
    +8,268 / -201
    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
    Lifetime Member

    Joined:
    Jun 12, 2014
    Messages:
    20,968
    Oxbucks:
    $6,618
    Ratings:
    +9,002 / -375
    It will become taxable
     
  4. Bushmaster

    Bushmaster Well-Known Member
    Lifetime Member

    Joined:
    Jul 27, 2018
    Messages:
    1,746
    Oxbucks:
    $2,775
    Ratings:
    +3,276 / -174
    Huh?
     
  5. AugustaGator

    AugustaGator Junior Member
    Lifetime Member

    Joined:
    Jun 12, 2014
    Messages:
    20,968
    Oxbucks:
    $6,618
    Ratings:
    +9,002 / -375
    The government is going to rescind that law and make the gains taxable.
     
  6. no1g8r

    no1g8r Bringing Reason to the Masses
    Lifetime Member

    Joined:
    Oct 23, 2017
    Messages:
    1,990
    Oxbucks:
    $3,762
    Ratings:
    +4,316 / -132
    Unlikely anytime soon, but if they did, it is almost certain that existing contributions would be grandfathered in.
     
    • FireFoley

      FireFoley Senior Member
      Lifetime Member

      Joined:
      Nov 19, 2014
      Messages:
      4,714
      Oxbucks:
      $4,694
      Ratings:
      +6,585 / -400
      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....
        Lifetime Member

        Joined:
        Sep 8, 2014
        Messages:
        17,614
        Oxbucks:
        $20,837
        Ratings:
        +28,536 / -433
        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.
         
        • Concrete Helmet

          Concrete Helmet Hook, Line, and Sinker
          Lifetime Member

          Joined:
          Jul 29, 2014
          Messages:
          14,639
          Oxbucks:
          $8,647
          Ratings:
          +14,142 / -1,031
          Did anyone take advantage of this? I really should have done it this year but next year is looking like a good amount of tax write offs too. I think I've also read that you don't have to convert all at once( I'd rather stagger it depending on my tax write offs year to year.)
           
        • Detroitgator

          Detroitgator Well-Known Member
          Lifetime Member

          Joined:
          Jul 15, 2014
          Messages:
          18,413
          Oxbucks:
          $13,176
          Ratings:
          +21,389 / -157
          No.
           

        Share This Page

        The Box

        Help

        You don't have the necessary permissions to use the chat.

          1. There are currently no users chatting.
            • About Us

              Our community sprung up when the Gatorsports message board was shut down in the summer of 2014. We pride ourselves on offering Gator-biased, yet critical discussion among people of all different backgrounds. We are working every day to make sure our community is the best Gator message board you will find.
            • Like us on Facebook

            • Buy us a Zima!

              The management works very hard to make sure the community is running the best software, best designs, and all the other bells and whistles. Care to buy us a non-alcoholic Zima? We'd really appreciate it! Just click the "Donate" tab at the top of the page.