Convert IRA to Roth?

Posted on February 14, 2011


For 2010 you can convert your traditional IRA to a ROTH IRA regardless of your income and you will be able to pay one half the tax on the conversion in 2010 and one half in 2011.  However, the tax in 2011 will be at the tax rates in effect when you file 2011.  If you have your money in a 401k you can also make this conversion but your employer may need to amend the 401k plan to allow this conversion.  There are lots of new rules coming in the 401k area and employers need to make sure they understand their duties and liabilities as a fiduciary of the plans.  The department of labor just issued new disclosure rules and attorneys are filing lots of litigation against employers in this area.  If you want a second opinion on your plan, please feel free to contact us.

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