Before you convert an IRA to a Roth IRA, you can separate the account into various categories: value stocks, growth stocks, bonds, etc. Then you can convert each IRA to a separate Roth IRA.
If some categories go up while the others go down, the depressed Roth IRAs can be recharacterized (turned back into a traditional IRA) while the other Roth IRAs can remain in place. You have until October 15 of the following year to make this look-back decision.
For the IRAs that were un-converted, you can re-convert to Roth IRAs after a wait of at least 30 days. The lower the value of the IRAs, the lower the tax cost of a Roth IRA conversion.
As for the Roth IRAs that remain, all future growth can be completely tax-free. All you have to do is hold on for five years, until you’re at least 59 1/2, before taking money out.
