Money Moves Retirees Can Make Now to Reduce Next Year’s Taxes
Wednesday, April 16, 2025
But Slott cautions that racing to convert a traditional IRA to a Roth IRA when the market tanks can be tricky. “You can’t time it,” he said.
“I have heard stories already from people who said, ‘Oh, the market was down 2,000 and the next day it was down a thousand, so I’m going to convert now.’ And by the time the order was processed, it was up 3,000.”
His advice: Do a series of smaller annual conversions over time, or even monthly and keep in mind that Roth conversions are permanent. “There are no backies, no do-overs. This has got to be a planned event,” he said.