Jan. 1, 2010
The New 2010 Roth IRA Conversion Opportunity — Is it Right for You?
In 2010 the income limit on Roth conversions will become extinct, so that anyone, regardless of their Adjusted Gross Income, can convert from traditional IRAs to Roth IRAs.

Roth IRA’s have two major advantages over traditional IRAs. After a 5-year holding period their distributions are tax-free to accountholders over 59.5 or in certain circumstances that are not age dependent. And they are not subject to the minimum mandatory distribution rules that apply to traditional IRAs.

Anyone converting a traditional IRA to a Roth IRA will have an income tax consequence from the action. For those who find paying those taxes in 2010 prohibitive, the IRS is offering the deferral of the tax owed in 2010 to be payable half in 2011 and half in 2012.

Roth IRAs can be a valuable retirement tool. There are many factors to consider when determining whether to convert to a Roth IRA. We hope we can help you investigate whether this conversion opportunity could benefit you.