Cat-tirement
Recycles dryer sheets
- Joined
- Mar 30, 2013
- Messages
- 290
I am looking for confirmation of what I think is true...
I have an IRA that contains mostly various corporate bonds and treasuries. In the past I have done Roth conversions of stocks or funds in-kind, and I understand the advantage of doing so when the share price is lower so the taxable amount of the conversion is lower. Now I am planning on doing a Roth conversion on a bond issue that I bought below par, and is still valued below par. I assume that this below par value is what would be reported as taxable, providing an advantage over converting something with a lesser or no discount in value (sort of like when converting a stock or fund). Am I correct in my assumption? Is there anything else I'm missing or should be aware of?
Thanks for the feedback.
I have an IRA that contains mostly various corporate bonds and treasuries. In the past I have done Roth conversions of stocks or funds in-kind, and I understand the advantage of doing so when the share price is lower so the taxable amount of the conversion is lower. Now I am planning on doing a Roth conversion on a bond issue that I bought below par, and is still valued below par. I assume that this below par value is what would be reported as taxable, providing an advantage over converting something with a lesser or no discount in value (sort of like when converting a stock or fund). Am I correct in my assumption? Is there anything else I'm missing or should be aware of?
Thanks for the feedback.