Re: XXVP [vpFREE] Roth IRA conversions for 2010

Hmmm.  Go to www.rickedelman.com and search for his Roth IRA articles.  Articles discuss pros as well as cons on conversions. There are some interesting cons to consider.

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>--- On Tue, 1/5/10, TedChee@aol.com <TedChee@aol.com> wrote:

 

>Why is this a topic for this group? If you gamble a lot (and pay your
taxes religiously) , you may be in that group which has not been able to
participate in Roth IRA conversions in the past because your modified adjusted
gross income (MAGI) was too high. Well, starting in 2010 income restrictions
have been lifted on CONVERSIONS to a Roth IRA. (From what I've read, income
restrictions are still in effect for the Roth IRA itself.)

>Here's the little gem for converters in 2010. For 2010 only, you have the
option to pay all the taxes in 2010 or pay half in 2011 & half in 2012. Top
tax brackets go up in 2011. After 2010, the tax must be paid in the year
the conversion is COMPLETED. Note the emphasis on "completed".

>This is just the outline so go to your financial adviser for more details
& also whether a conversion is right for you.

>FYI
In a traditional IRA, you have to make required minimum distribution (RMD)
after 70.5. In a Roth IRA, there is no RMD. If you were of the age for an
RMD during 2008 & were in the stock market, you had to sell part of it in a
plunging market. The feds gave you a break in 2009 by lifting the RMD but
>that's not likely to happen again.

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