7 steps to a 2010 Roth IRA conversion
If you have funds in an individual retirement account, converting them into a Roth IRA in 2010 presents an unprecedented opportunity to sock away tax-free retirement income.Ch. 2: All about IRAsCash out, leave 401(k) or roll over?Differences between a Roth IRA, 401(k)7 steps to a Roth IRA conversion4 steps to undo a Roth conversion3 ways to pay for a Roth conversionBoomer dilemma: traditional or RothRoth conversion investment strategiesPenalty-free IRA, 401(k) withdrawalsChapter1234ALL
The IRS is even offering taxpayers a three-year window in 2010 to pay taxes due on a conversion and is removing income limits that have kept higher-income taxpayers from setting up Roth IRAs.
Many taxpayers have been able to convert their traditional IRAs to Roth IRAs since Roth IRAs were created in 1998. However, income limits and other restrictions have kept many taxpayers from converting. If their modified gross income is more than $100,000, they haven’t been able to convert. [Read the full article]