By Paul Schmitt
As the stock market experiences some reported corrections in the past two weeks, people may want to look at making changes to their existing Individual Retirement Accounts, according to one local estate planner. Attorney Bob Ross of Ross Estate Planning says when people have to take money out of their IRA they must pay for the income tax. He says you should consider that with the current low tax environment, but a high valued market, to make changes after market corrections.
Ross says the value increases can happen tax-free with a Roth IRA where as they would be tax-deferred in a traditional IRA with a higher tax rate. The Dow Jones Industrial Average has experienced about a 1500 point drop since October 3rd.