Stock Gloom & Roth IRA Opportunities

Posted on

Stock Gloom and Roth IRA Opportunity Planning

There may be a window open right now for a timely Roth conversion or a recharacterization of a prior Roth conversion made in calendar year 2010. The reason is that doing a conversion now may be far cheaper from a tax standpoint than it was just a few weeks ago. Obviously, converting assets within a traditional IRA into a Roth requires paying taxes on the amount to be converted. Since the market has been hammering assets, including those within traditional IRAs, the tax cost has also been reduced.

An investor in the 33% tax bracket would owe $33,000 on a $100,000 conversion, but if the market reduced those assets to $75,000, the tax burden would fall as well, to $24,750 in this example.

Access full article here

About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

More Insights from Keiter CPAs

The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


How Can We Help You and Your Business?

Innsbrook Corporate Center
4401 Dominion Boulevard
Glen Allen, Virginia 23060

804.747.0000 or 804.273.6200