Should You Convert To A Roth IRA?


While there is no set answer to this question, more IRA holders will get to ponder it now than ever before with new conversion rules that started in 2010. In previous years, anyone above the modified gross income limit of $100,000 was unable to convert. In 2010, this ceiling no longer applies. Those wanting to take advantage of the conversion in 2010 have an added incentive. Conversions that occur in 2010 will be able to have half of the taxable converted amount taxed in 2011 and the other half taxed in 2012, allowing converters to spread the tax liability over time.

In addition to a traditional IRA, other assets, such as those in a 401(k) or 403(b) from a former employer may also be converted into a Roth IRA.

Conversion is not for everyone. The best practice is to consult a tax professional. For more information on the best place for your assets, call our service team today.

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