Roth IRA Conversions
This is the ideal time to convert traditional individual retirement accounts holding Business Development Companies ("BDCs") into Roth IRAs due to:
- Beaten down stock prices
- Currently lower tax rates
- Reduced income/tax brackets
- Reducing taxes for beneficiaries
Most BDCs are publicly traded with a highly transparent structure subject to oversight by the SEC, states and other regulators, providing investors with higher-than-average dividend yields (currently over 17%). However, the dividends paid by BDCs are reported using 1099-DIV and taxed as income which is why I suggest holding these investments in tax-free or tax-deferred accounts