RothConversions.Com Web Site

www.RothConversions.com


Purpose

The purpose of this site is to provide technical and planning information on Roth IRA Conversions as well as information on Brentmark products that illustrate Roth IRA Conversions.


News

From IRS Publication 590, Individual Retirement Arrangements (IRAs):
Conversions to Roth IRAs.
Beginning in 2010, the modified AGI and filing status requirements for converting a traditional IRA to a Roth IRA are eliminated.

Also, for any 2010 rollover from an IRA other than a Roth IRA to a Roth IRA, any amounts that would be included as income will be included in income in equal amounts in 2011 and 2012. You can choose to include the entire amount in income in 2010.


Articles

Title Description (Publication and Date Published)
Roths For The Rich Article by Ashlea Ebeling (Forbes, 2/27/12)
Quote:
...high earners still can’t make annual contributions to Roth IRAs–directly. But today they can shovel as much as $12,000 in 2011 and 2012 contributions per person into Roth IRAs by dancing a little two-step through the Roth’s back door.
George W. Bush's 2010 Tax Miracle Article by Donald L. Luskin (Wall Street Journal, 4/15/10)
Quote:
The tax and estate planning benefits are so compelling that the wealthiest Americans are likely to convert in droves. When the conversions are reported next year in tax-year 2010 filings, that's going to drive hundreds of billions of dollars in unexpected revenue.
For Shift to Roth I.R.A., Know the Pitfalls to Avoid Article by Deborah L. Jacobs (The New York Times, 3/3/2010)
Quote:
CONVERTING a traditional individual retirement account to a Roth I.R.A. is a widely discussed financial planning tool right now, but the mechanics can be tricky. The process is new to many people, because until this year, you were shut out of a Roth if your adjusted gross income was more than $100,000.

Not So Fast
Now is the time to convert to Roth IRAs-so long as your clients don't fall into these tax traps.

Article by Ed Slott (Financial Planning, 3/1/2010)
Quote:
The Roth IRA conversion floodgates are open. But while the attraction of "tax-free forever" can be powerful, Roth conversions can trigger unintended tax traps and financial problems that are often not addressed until it's too late.

Law & IRS

Title Description
IRS Publication 590, Individual Retirement Arrangements (IRAs)

This publication discusses individual retirement arrangements (IRAs). An IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement.


Other Resources

Title Description
Ed Slott's IRA Advisor This excellent publication is only $125 for a one-year subscription including many back issues.
Brentmark Software Brentmark® has the following software product that handles Roth IRA Conversions:
Retirement Plan Analyzer

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Last modified: February 14, 2012