A Good Plan Gone BadI was one of those who took advantage of the low share price to convert my THTX holdings from an IRA to a Roth IRA, meaning I pay the taxes now on the low value hoping it will increase and then will be free from tax upon withdrawal.
This is how that grand idea worked out ....
Since I did this in December & January (split across two tax years) and since the share price is about 1/2 of what it was when I converted, that effectively doubles the tax rate I paid (if one considers today's balance) ... from 24% to 48% ... OUCH! I don't think I'll get the "Most Prudent Investor of the Year Award" this time.
This wound will heal quickly if the share price recovers, but it is a gaping and painful gash at the moment as I write the estimated tax check that is due on April 15.
-LT
PS: I had a glimmer of hope when I saw one could reverse a Roth conversion, but this opportunity was eliminated in 2018 and beyond.