Comments on: To Convert to a Roth IRA or Not: That Is the Question http://blog.equifax.com/retirement/to-convert-to-a-roth-ira-or-not-that-is-the-question/ Fri, 17 May 2013 00:53:39 +0000 hourly 1 http://wordpress.org/?v=3.5 By: George http://blog.equifax.com/retirement/to-convert-to-a-roth-ira-or-not-that-is-the-question/#comment-57 George Sat, 19 Jun 2010 17:49:19 +0000 http://ec2-50-19-98-117.compute-1.amazonaws.com/retirement/to-convert-to-a-roth-ira-or-not-that-is-the-question/#comment-57 Good advice – thanks Eva!

]]> By: Eva Rosenberg, EA http://blog.equifax.com/retirement/to-convert-to-a-roth-ira-or-not-that-is-the-question/#comment-56 Eva Rosenberg, EA Fri, 04 Jun 2010 04:09:18 +0000 http://ec2-50-19-98-117.compute-1.amazonaws.com/retirement/to-convert-to-a-roth-ira-or-not-that-is-the-question/#comment-56 Actually George,

Go talk to your tax pro – or consult Dan! If you cash out all your IRAs you just might be able to write off the loss as a Miscellaneous Deduction on Schedule A.

To IRS, a loss means that you cash out less than you put in. Not that your IRA is worth less now than it did two years ago.

As a result, you get your money now. Pay tax on the distribution. Get a deduction for the loss. Roll it DIRECTLY into a Roth IRA. And invest it in something stable. For the long-term, not the roller-coaster ride. (If you can find something.)

Read more of Dan's tips for ideas.

]]> By: George http://blog.equifax.com/retirement/to-convert-to-a-roth-ira-or-not-that-is-the-question/#comment-55 George Thu, 20 May 2010 20:09:04 +0000 http://ec2-50-19-98-117.compute-1.amazonaws.com/retirement/to-convert-to-a-roth-ira-or-not-that-is-the-question/#comment-55 Question: Lots of positive talk and spilled ink about Roth conversions, but can't find anyone addressing the following scenario: my traditional IRA is still 20-30% underwater from the 2008 crash. How does it make sense for me to convert to a Roth, thereby actually realizing the huge loss? Am I missing something here? Great show Ilyce – thanks much!

]]> By: Eva Rosenberg, EA http://blog.equifax.com/retirement/to-convert-to-a-roth-ira-or-not-that-is-the-question/#comment-54 Eva Rosenberg, EA Tue, 18 May 2010 00:39:19 +0000 http://ec2-50-19-98-117.compute-1.amazonaws.com/retirement/to-convert-to-a-roth-ira-or-not-that-is-the-question/#comment-54 Hi Dan,

I'm glad you're tackling this and look forward to what people have to say about this touchy topic.

One other reason to convert to a Roth is your IRA has declined dramatically in value, to less than you contributed to the IRA. If you cash out all your IRAs, you might be able to take a Miscellaneous Itemized Deduction for the loss of your contributions. No guarantees. Check with your tax pro.

A reason not to bother converting?
You really don't have any investments that are going to go up dramatically in value anyway. And you don't have the time, expertise or contacts to handle the account for you. If it's just plodding along at 1% or 2%, why bother paying taxes now? You're not going to earn any more when you move it to a Roth either.

Best wishes,

Eva

Your TaxMama

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