Is May 2020 the Best Time in History to Make a Roth IRA Conversion?

Share Article

With investors giving back $6 trillion in wealth during today’s COVID-19-fueled market decline, millions of Americans are justifiably worried about the potential effects of the coronavirus – not only on their health but also on their wealth. Best-selling author, CPA, attorney, and retirement expert James Lange has a strategy that he says can help you ensure that you can retire secure for life—despite the pandemic, the recession, and the unpredictable volatility of the Dow. Find out why now may be the best time in history to secure your financial future by making a Roth IRA conversion.

James Lange
The gains in the Roth IRA are tax-free for the remainder of you and your spouse’s lives and beyond.

From: Lange Financial Group LLC
Contact: James Lange, CPA/Attorney, phone 412-521-2732.

For immediate release

With investors giving back $6 trillion in wealth during today’s COVID-19-fueled market decline, millions of Americans are justifiably worried about the potential effects of the coronavirus – not only on their health but also on their wealth.

Now best-selling author, CPA, attorney, and retirement expert James Lange has a strategy that he says can help you ensure that you can retire secure for life—despite the pandemic, the recession, and the unpredictable volatility of the Dow:

“Make a ROTH IRA conversion today,” Lange urges many clients and readers. “The new Coronavirus Aid, Relief, and Economic Security (CARES) Act makes Roth IRA conversions more promising for more IRA owners than ever before.”

Lange also points out that the $2 trillion CARES Act temporarily suspends the Required Minimum Distribution (RMD) withdrawals from traditional IRAs and retirement plans.

As a result, not taking distributions from a traditional IRA can make doing a Roth IRA conversion particularly timely and advantageous today, says Lange, “because it might keep or put you in a favorable tax bracket by reducing your taxable income.”

He adds that if you were already planning on a Roth IRA conversion, doing it now could give you an opportunity to convert an even larger amount.

In addition, Lange has identified a few other factors that make now an ideal time to do a Roth IRA conversion:

>> If the market does go up after you make a Roth IRA conversion – and Lange notes that “markets invariably recover after crashes” -- you will in effect be getting your Roth IRA at bargain rates.

>> Between our current deficit and the new $2 trillion bailout, it isn’t a huge leap to think tax rates will go up in the future. And if you think tax rates will increase over the long run and specifically increase for you, then Roth IRA conversions can be a great idea, says Lange.

>> The SECURE Act, effective on January 1, 2020, accelerates the income tax on most inherited IRAs within 10 years of the owner’s death. But the distributions from a Roth IRA are tax free.

Therefore, notes Lange, your beneficiaries can let the Roth account grow, and then take the entire distribution in year 10 with no tax consequences.

>> As Lange explains in his new book The IRA and Retirement Owner’s Guide to Beating the New Death Tax, the year after the first spouse dies, the survivor will likely be filing as a single taxpayer, at a higher income tax rate -- making it a less favorable time to do a Roth IRA conversion vs. doing it right now, when both spouses are still alive.

>> Some financial advisors are recommending you rebalance your portfolio by putting more money in the market right now, when it is low. But, says Lange, “If the market stays low for a long time, there might not be much of a short-term benefit from rebalancing. However, a Roth IRA conversion would likely still be beneficial for you and your family over the long term.”

>> What’s more, doing the Roth IRA conversion now leverages your money by locking in tax-free gains, because, notes Lange, “The gains in the Roth IRA are tax-free for the remainder of you and your spouse’s lives and beyond.”

Lange says, “For many taxpayers, now might be the best time in history to execute a Roth IRA conversion.”

Lange, a best-selling author, has just released his 8th book, The IRA and Retirement Owner’s Guide to Beating the New Death Tax.

Among other timely topics, The IRA and Retirement Owner’s Guide to Beating the New Death Tax includes proven strategies for:

  • Defending your legacy wealth against the new confiscatory SECURE Act.
  • Taking advantage of the CARES Act to reduce taxes legally.
  • Reducing taxes on the wealth your heirs inherit from you through an under-publicized way to donate substantial sums to your favorite charity.
  • And much more.

For a limited time only, you can get a FREE pre-publication copy of James Lange’s new book The IRA and Retirement Owner’s Guide to Beating the New Death Tax (cover price: $24.95).

To request your free book, go to BeatNewDeathTaxBook.com or call Lange Financial toll-free 800-387-1129 today. There is no cost or obligation of any kind.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Erika Hubbard

Sandy Proto
@rothguy
since: 04/2009
Follow >
James Lange, CPA/Attorney
Like >
Visit website