A down market may be an opportunity to reduce the tax burden of a Roth conversion.
why a Roth individual retirement account conversion may pay off in a down market
Roth conversion opportunity
Moderator: Aitrus
Roth conversion opportunity
“The genius of investing is recognizing the direction of the trend – not catching the highs or the lows.”
- Dean Witter
"Put all your eggs in one basket and then watch that basket."
- Andrew Carnegie
- Dean Witter
"Put all your eggs in one basket and then watch that basket."
- Andrew Carnegie
Re: Roth conversion opportunity
Interesting article. I've been thinking that after I retire next year might be a good time to convert some of my IRA & TSP savings over to a Roth. Anyone else doing/done this?
Re: Roth conversion opportunity
I've done conversions several years, wasn't planning on doing any this year but depends on how bad things get during the year
Re: Roth conversion opportunity
Does TSP allow someone to do this?
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Disclaimer: The contents of this thread are known to the state of California to cause cancer. (As they always seem to know more than the rest of us)
Disclaimer: The contents of this thread are known to the state of California to cause cancer. (As they always seem to know more than the rest of us)
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Scarfinger
- Posts: 756
- Joined: Mon Jan 30, 2012 12:00 am
Re: Roth conversion opportunity
I believe the only option is to convert some to a Roth IRA. I am 99% sure you can not convert within the TSP traditional to Roth. You have to move the money out to an IRA.
From Fed-retirement website:
From Fed-retirement website:
The TSP does not allow for ROTH conversions. The TSP will allow you to change the tax status of your contributions from Traditional to ROTH which will affect contributions moving forward.
I am just an average Joe. I have no clue to what the market will do.
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation ofTimboSlice wrote: "People really need to stop overthinking this."
Fund Prices2023-05-26
| Fund | Price | Day | YTD |
| G | $17.50 | 0.01% | 1.54% |
| F | $18.47 | 0.07% | 1.46% |
| C | $64.96 | 1.31% | 10.27% |
| S | $64.41 | 1.47% | 4.69% |
| I | $37.17 | 0.96% | 9.52% |
| L2065 | $13.39 | 1.20% | 9.24% |
| L2060 | $13.39 | 1.20% | 9.24% |
| L2055 | $13.40 | 1.20% | 9.24% |
| L2050 | $27.52 | 1.00% | 7.91% |
| L2045 | $12.64 | 0.94% | 7.53% |
| L2040 | $46.48 | 0.88% | 7.15% |
| L2035 | $12.37 | 0.81% | 6.71% |
| L2030 | $41.52 | 0.74% | 6.26% |
| L2025 | $11.94 | 0.46% | 4.56% |
| Linc | $23.65 | 0.31% | 3.48% |