Originally Posted by bmcgonig
Could you elaborate on that? Also, what do you mean "one fund per new account" ?
Sent from my iPad using Early Retirement Forum
I Roth convert by transferring some shares from my tIRA, all from the same fund. As a slice and dicer I have plenty to chose from. At the beginning of the year I Roth convert into maybe 6 new Roth accounts, each holding just the shares of one fund, but all different funds. If any fund loses more than 10% I Roth convert another chunk of those fund shares into a new account, if available. At the end of the year I might convert a little more if the funds have any losses, including a Roth with cash.
At tax time I determine how much I want to Roth convert. I then recharacterize the Roth accounts with the lowest gains until I reach my target. This is possible because you are holding the shares of each fund in a separate Roth account. You can recharacterize a whole account, but you can't recharacterize only specific shares from a combined account. I'll do a partial recharacterization of one account to fine tune the conversion amount to the dollar.
One of the neat instances when you can retroactively decide what you want to do, based on past performance. Kind of a bummer if you Roth convert and the shares are down 10% at the end of the year. This way there are no regrets.