Bear markets are financially painful. But along with the pain, a down market offers an upside — namely, an opportunity for significant tax savings when moving money from a Traditional IRA to a Roth IRA. Of course, we can’t say for sure if a bear market is in the offing this year, but if one occurs, it will present an ideal time for a Roth conversion.
Further, with most federal income-tax rates scheduled to increase in 2026, converting money to a Roth before then would seem to be a tax-savvy approach.
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