With the downturn, is now the time to do a Roth conversion and let my funds recover tax free? I just wish I would have to pay tax on funds converted (am in 25% bracket and have state income tax too). Any strategies to lessen the blow? And for my situation what split of 401-k vs Roth 401-k contribution is appropriate?

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Posting as :
works at
You are currently posting as works at

Conversions are less about market conditions and more about your income level due to the tax implications of the conversation. If you got laid off and expected to have significantly lower income, totally would make sense to me. Otherwise, unrelated.

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I do 100% Roth. You have a high chance of making more at retirement age than now. If you’re making less near retirement than now. Not very often are you making less than now. Well I myself am 27, so that is true for me, but not sure for you.

The metric isn't now vs. income at age of retirement, but income you want to pull out during retirement. This is different based on everyone's goals for retirement - but for many people major life expenses incurred now won't be applicable - mortgage, kids education, car payments, etc; therefore expected income to maintain similar lifestyle is actually lower.

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