One option for some seniors: Roth IRA

Some investors could make a big move in this crisis-driven market by converting their retirement accounts to a Roth IRA.

One caution: It might be smart for you, and it might not.

Naturally, with all things about investing, it all depends.

Roth IRAs are great investments when the stock market is down, according to Leon LaBrecque of the Sequoia Financial Group. That’s because, as the market recovers, you make money tax free.

Roths are also good when taxes are low. You hope to pay low taxes on a Roth when you invest and avoid higher taxes when you take distributions. If you are looking at the recent $2 trillion relief bill, with promises of more to come, who would blame you if you thought taxes were going to rise?

Finally, Roths are best for optimists. Do you think it is a bear market that won’t recover for a decade? Or do you think it is a short-term crisis market that will recover swiftly?

A down market that is poised to recover, is an optimum time for converting to a Roth, according to LaBrecque.

To actually decide whether this would be beneficial to your situation, you have to speak to an investment professional. Depending on your financial situation, there are several ways to create a Roth, but also serious pitfalls.