In between jobs (and collecting unemployment) at the moment, and wondering if now would be a good time to convert funds so I can manage the money a little more strategically.
Is unemployment a good time to convert 401k funds to Roth IRA?
byu/InfiniteChicken inpersonalfinance
Posted by InfiniteChicken
3 Comments
You can always roll old employer 401k to Traditional/Rollover IRA to satisfy your itch to “manage the money a little more strategically.”
* https://www.reddit.com/r/personalfinance/wiki/retirementaccounts/rollovers
With that said, it’s less about “unemployment,” and more so about your income for the *year*.
If you have an abnormally low income year, then it *might* be worthwhile to do an evaluation of whether or not you have access to low tax brackets in comparison to during retirement (when presumably you would have low/no work resulting in access to low tax brackets).
yes, low income year is perfect for roth conversions, just keep enough cash to pay the taxes
What’s is your goal? Why not roll the 401k over to a rollover fund and avoid the tax hit?