IRA Conversion Rules 2010
In 2010, the IRA conversion rules for individuals making more than $100,000 will change so that existing IRAs can be converted into Roth IRAs with two years to pay off taxes on the money. Transfer assets from a traditional IRA to a Roth IRA if you think you may be in a higher tax bracket upon retirement with advice from an investment portfolio manager in this free video on individual retirement accounts.
Promoted By Zergnet
So what are the IRA conversion rules for 2010. The regular IRA conversion from a traditional IRA to a Roth IRA, you will pay immediately you are liable for taxes on the tax deferred money that you are transferring over to the Roth. In 2010 for people making one hundred thousand dollars or more, you are able to make that conversion from an existing IRA to a Roth, and they will give you two years to pay off those taxes that are liable on the money. So it does give you some time, you know if you've got a very substantial IRA here, you're going to have substantial tax that was deferred over the years. So when you make that conversion to the Roth in 2010, and it's 2010 only at this point, you'll be given two years to pay those taxes. And basically set things straight with the IRS, but the conversion rules for Roth for the rest of us are the same, and sort of business as usual. But the thing to think about is if you have decided that maybe you will be in a higher tax bracket when you retire, or when you are close to retirement age as you are now. You may want to transfer those assets from a traditional IRA, put them in a Roth, and you will be responsible for less taxes in the long term.