{"id":1007,"date":"2025-07-30T14:28:40","date_gmt":"2025-07-30T14:28:40","guid":{"rendered":"https:\/\/www.sasscpas.com\/blog\/?p=1007"},"modified":"2025-07-30T14:28:41","modified_gmt":"2025-07-30T14:28:41","slug":"is-now-a-smart-time-for-a-roth-ira-conversion","status":"publish","type":"post","link":"https:\/\/www.sasscpas.com\/blog\/index.php\/2025\/07\/30\/is-now-a-smart-time-for-a-roth-ira-conversion\/","title":{"rendered":"Is Now a Smart Time for a Roth IRA Conversion?"},"content":{"rendered":"\n<p>Market volatility may have shrunk your traditional IRA, but that could be an opportunity. A lower account value means you can convert to a Roth IRA and pay less tax on the conversion.<\/p>\n\n\n\n<p><strong>Traditional vs. Roth IRAs<\/strong><\/p>\n\n\n\n<p>Traditional IRA contributions may be deductible (depending on income and employer-sponsored retirement plan participation). Funds grow tax-deferred, but withdrawals are taxed. You will owe penalties for early withdrawals and must take required minimum distributions (RMDs) beginning after age 73 (age 75 if you don&#8217;t turn 73 before Jan.1, 2033).<\/p>\n\n\n\n<p>Roth IRA contributions aren&#8217;t deductible, but withdrawals &#8211; including earnings &#8211; are tax-free if you&#8217;re at least 59\u00bd and the account has been open for five years. There are no RMDs, and contributions can be withdrawn anytime tax-free. While income limits restrict direct Roth contributions, anyone can convert a traditional IRA to a Roth. But taxes are due on the converted amount.<\/p>\n\n\n\n<p><strong>Why convert now?<\/strong><\/p>\n\n\n\n<p>A depressed IRA balance means a smaller tax bill on a Roth conversion. Once converted, there will be no taxes on future growth. But consider the following:<\/p>\n\n\n\n<ul><li>Can you pay the taxes with non-IRA funds? Using retirement funds to pay the tax could undermine the benefits.<\/li><li>What&#8217;s your timeline? Conversions usually make sense if you don&#8217;t plan to tap the funds right away, allowing for long-term, tax-free growth.<\/li><\/ul>\n\n\n\n<p>You don&#8217;t need to convert all at once. Spreading conversions over several years can reduce the tax impact and provide flexibility.<\/p>\n\n\n\n<p><strong>Let&#8217;s talk<\/strong><\/p>\n\n\n\n<p>A Roth conversion can be a savvy move, but it isn&#8217;t for everyone. Contact us at (631) 368-3110 to explore whether it fits your retirement strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market volatility may have shrunk your traditional IRA, but that could be an opportunity. A lower account value means you can convert to a Roth IRA and pay less tax on the conversion. Traditional vs. Roth IRAs Traditional IRA contributions may be deductible (depending on income and employer-sponsored retirement plan participation). Funds grow tax-deferred, but [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":1008,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1007"}],"collection":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=1007"}],"version-history":[{"count":2,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1007\/revisions"}],"predecessor-version":[{"id":1016,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1007\/revisions\/1016"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media\/1008"}],"wp:attachment":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=1007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=1007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=1007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}