Roth conversion timing when just moving shares between accounts?
I am already have both a traditional IRA (large) and a Roth IRA (small). Both are with the same investment company, so doing a Roth conversion is simple: I just move shares from the traditional account to the Roth account .
I’ve read about doing the conversion on a monthly basis to spread market risk. But since I’m just moving shares between accounts at the same investment company, is there any reason to do the conversion on a monthly basis?
Permalink Submitted by Alan - IRA critic on Tue, 2021-05-25 18:27
Converting shares has the same general effect as converting cash from share sales and then purchasing shares in the Roth IRA right after the conversion. Either approach results in averaging over several different dates rather than using a single date. In some years a single conversion will produce better results and in others multiple conversions. This is driven by market patterns and the general market trend for the year.