2010 IRA Conversions

If you have been considering converting a traditional IRA to a Roth IRA, 2010 presents potentially significant tax advantage to making the conversion. The previous income limit of $100,000 has been repealed, meaning that anyone, regardless of income, can make the conversion. Moreover, the income taxes that would be due on the 2010 conversion can be spread over two years. So the 2010 conversion amount may be included as taxable income in 2011 and 2012 - helping to spread out the tax bite.