There are many strategies surrounding the IRA and Roth IRA, two of which are the Roth IRA Conversion and the Recharacterization of a prior Conversion. There are many articles out there describing these strategies, but the reason for this post is to make you aware of a silver lining in a down market. If you executed a Roth IRA Conversion in 2015 when the market was up, you may want to consider Recharacterizing - or undoing - the conversion and furthermore you may want to consider Reconverting in the current down market. If you did not execute a Roth IRA Conversion in 2015, you may want to consider doing so in the current down market.

There are many factors that affect the decision of whether to Convert, Recharacterize or Reconvert, and each individual situation is unique, so please contact your financial advisor as you consider these options.

Please contact us if you have any questions regarding this issue.