Roth Conversion in 2010? It is Almost Time to Decide.
Douglas L. Kaune, Probate Attorney
Wills * Trusts * Probate * Elder Law * Estates * Estate Planning * Asset Protection Planning
Malvern, Phoenixville, and West Chester Law Offices Chester, Montgomery, Delaware, Philadelphia, Berks and Bucks County
Roth IRA’s can have significant income tax benefits for you and for generations to come. However, many wealthy individuals have been unable to take advantage of the Roth IRA because of low income ceilings set by the Internal Revenue Service (IRS). However, in January 2010, the IRS income ceiling for Roth conversions will be removed. This will present many wealthier individuals an option to convert an existing IRA to a Roth IRA which had not previously been available. The painful part of the decision will be the income tax that will be due as a result of the conversion. The initial inclination is to defer the tax as long as possible, but the Roth conversion comes with the benefits of tax-free withdrawals and elimination of required minimum distributions. This can provide a tremendous tax benefit to individuals in their retirement years and to their beneficiaries who will also be able to take withdraws income tax free. Read this great article setting out the pros and cons of making a Roth IRA conversion. This is an important opportunity that should be discussed with your Estate Planning Attorney, Financial Advisor and Accountant to determine the best decision for you and for your family. I will follow this with posts regarding the estate planning and estate tax benefits of making the Roth conversion.
Please contact Douglas L. Kaune, Esq. at 610-933-8069 or dkaune@utbf.com to comment or discuss this and other topics.
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Written by: Douglas L. Kaune
E-mail: dkaune@utbf.com
Phone: 610-933-8069
AVVO Rating: 10.0
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November 30th, 2009 at 12:17 pm
I finally found answers I’ve needed. This makes perfect sense and the info is easy to follow… and very much appreciated.
December 2nd, 2009 at 9:34 am
Thanks! There is a lot of great stuff in the linked article. I think it is a must read for those considering the conversion to a Roth.
January 17th, 2011 at 3:41 pm
http://ww10.yuwie.com/blog/entry.asp?id=1064512&eid=679289 Thanks for that awesome posting. It saved MUCH time