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|Subject: Re: Now the time to convert IRA?||Date: 10/18/2008 4:36 PM|
|Author: wrjohnston91283||Number: 64294 of 81642|
Since almost everything is down, seems like NOW is a good time to convert regular IRA's or rollovers to a Roth IRA for those funds which are now worth less than what you put into them, you wouldn't have a gain, so you wouldn't have to pay capital gain taxes on the conversion. Right? As long as you could convert it all as "in-kind" with the company you are with. What am I missing, this seems too good to be true, and when that happens, it usually is....
You don't pay capital gains taxes on IRA conversions, you pay your regular tax rate - even if you show a "loss"
If you convert a traditional IRA to a roth, you pay taxes on the entire amount, as you received a deduction in the past.
Now is still a good time to convert, as you'll be converting at a lower price, but still have to pay taxes - just less taxes.
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