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Article: Roth IRA strategies for a rocky market; For clients with IRAs that have stumbled of late, time is right to consider Roth IRAs.(IRA Alert)
- Article from:
- Investment News
- Article date:
- September 24, 2007
CopyrightCOPYRIGHT 2007 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Ed Slott
While recent stock market declines may worry some investors, those with stocks and funds in their individual retirement accounts can take advantage of current market volatility by making key moves.
If your clients' IRAs have taken a hit and lost some value, then take advantage of the decline by suggesting they convert all or any part of traditional IRA funds to a Roth IRA, if they qualify. To qualify for a Roth IRA conversion, adjusted gross income cannot exceed $100,000, and the investor cannot file a separate return, if married.
The investor will owe tax on any traditional IRA funds converted to a Roth IRA, but since the value ...