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Roth IRA Conversions in a Down Market: 6 Things to Consider 

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The stock market was already experiencing volatility before the crisis in Ukraine. The major market indexes are lower so far in 2022. For clients considering a Roth IRA conversion, this might be an excellent time to move forward.

Clients who might benefit from a Roth IRA conversion in a down market include: 

  • Those looking to manage their taxable income in retirement.
  • Those who expect to have income at or above their current level in retirement.
  • Those who believe tax rates will be higher in the coming years.
  • Those looking to minimize the taxes their kids or other non-spousal heirs will need to pay on inherited IRA assets. 

Does a Roth IRA conversion make sense in a down market environment like this? In the gallery above are some things to consider in working with your clients. As with Roth IRA conversions in any market environment, your clients depend on your expertise to ensure the conversion is done correctly and is consistent with their overall financial planning objectives. 

Roger Wohlner is a financial writer with over 20 years of industry experience as a financial advisor.