The stock market losses many investors have taken recently make conversion a smart move for many. Here's why.

If you ignore the mandatory withdrawal rule, you will be hit with a fine equal to 50% of the amount that you were required to take out.

One way around the mandatory withdrawal is to convert your traditional IRA to a Roth IRA. You must pay taxes on all your pretax contributions plus any gains in the account. Yet if the value of your account is down, your tax bill will be lower than when your account was making you happy.

If the market recovers after you convert, then your future gains will not be taxed. Another plus: with a Roth IRA there are no minimum withdrawal requirements.

But to do this, you need to crunch the numbers. Perhaps your accountant has already done this...if not, use the calculator at http://www.dinkytown.net/.

One final point: You cannot convert from a traditional IRA to a Roth unless your adjusted gross income is $100,000 or less. The amount is the same for married and single filers.