converting tiras to roth iras
is it better to convert a tira to a roth ira in the same fund and then change funds or change funds then convert the tira to the roth ira?
is it better to convert a tira to a roth ira in the same fund and then change funds or change funds then convert the tira to the roth ira?
Permalink Submitted by Alan Spross on Wed, 2007-10-10 01:07
It makes no difference unless there is going to be a redemption fee or other one time cost to change investments. In that case, make the change prior to the conversion so more of the costs will be in the TIRA and less in the Roth. That way you will not be paying conversions taxes on values that will be reduced irrespective of investment returns.
If you are changing custodians. you may have to convert the current funds to cash because the new custodian may not maintain a market for selected types of investments, particularly proprietary investments of the original custodian.