Roth IRA Conversions in 2010

In 2010, the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) gets rid of the income ceiling that prevented individuals with modified adjusted gross income in excess of $100,000 from making a qualified rollover to a Roth IRA.

After 2009, any kind of IRA (Individual Retirement Account) can be converted to a Roth IRA, including traditional deductible, nondeductible, rollover and inherited IRAs.

A Roth IRA rollover in 2010 is subject to income tax (payable over two years in 2011 and 2012) because it has not been previously taxed. The distributions are not subject to income tax. The minimum required distribution rules do not apply.

Contact an estate planning law firm for further information.