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Is a Roth Conversion Right For You This Year?

May 7, 2020

The Principle:

With everything going on with the economy, you have a lot of financial decisions to make right now including if a Roth conversion something you should do this year. Let’s break it down for you.

(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)

Honest Takes:

When should you do a Roth conversion? Is now a good time, in light of everything going on?

We don’t know what taxes will be in the future, but we at least know what they are right now. So, how can you know that the timing is right for a Roth conversion? On this episode of Retire with Integrity, Brian talks through the different situations people may be facing right now and who might benefit by doing a Roth conversion.

If you are a small business owner, this could likely be a year with a significant loss unfortunately. It might provide good timing though to consider a conversion. Even for those who are not small business owners, this may be a good year to time out a Roth conversion when your income is lower. Whether you are a furloughed worker or a rental property owner, you might want to see what you can do with a Roth conversion and how it impacts your taxes

For many, this is a bad time financially, but take the opportunity that is available. Consider everything from your investment options to your tax strategy, including whether or not to do a Roth conversion.

Listen to the full episode or click on the timestamps below to hear a specific part.

[0:16] – Is now a good time for Roth conversions?

[2:25] – If you are a small business owner, what can you do while you have losses?

[4:00] – If you aren’t a business owner, is this still potentially a good time?

[5:02] – Real estate investors need to consider what options they have while investment properties lose monthly rent or vacation rentals.

[6:30] – The more assets you have, the more opportunity.