Traditional IRA Conversion to Roth IRA
July 22, 2010 – 1:00 pmRoth IRA rollovers are now available to high income taxpayers. The income limit of $100,000 MAGI has been removed for 2010. An added benefit of converting in 2010 is the extra time to pay the tax. Upon conversion, half of the income can be reported on the 2011 tax return and the rest on the 2012 return. Taxpayers in higher income tax brackets may wish to elect to pay the tax in 2010 rather than in 2011 and 2012 as tax rates are likely to increase beginning in 2011. Several other factors should be considered prior to converting from a Traditional IRA to a Roth, so make sure to review the new law in full before making this decision.
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