Roth IRA Conversions

2010 might be a great time to convert your traditional IRAs!

Two advantages of Roth IRAs over traditional IRAs are that qualifying withdrawals from Roths are tax-free and the if you are the original Roth owner - then you don't need to take required minimum distributions after reaching age 70 1/2, and so you can pass the account's assets onto your heirs. And, beginning this year, the $100,000 modified AGI restriction on converting traditional IRA to a Roth IRA went away.

This, combined with the lower IRA asset values, makes 2010 the year for manyof you to convert your traditional IRAs to a Roth. There is also an election that can be made that allows you to defer paying the tax on the 2010 conversion until 2011 and 2012.

Kevin Sickels, CPA and Tax Manager

Haiti Contributions are deductible for 2009 tax returns

Taxpayers may claim a charitable contribution deduction in tax year 2009 for cash donations made before Mar. 1, 2010, for the relief of victims of the Jan. 12, 2010 earthquake in Haiti. The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti. It appears that only contributions fully earmarked for the Haiti earthquake relief qualify for the election.

Paul Thorstenson, Tax Partner

KT Supports SD Special Olympics Polar Plunge

Ketel Thorstenson will be sending a team to jump into the icy waters of Memorial Pond Feb. 27, 2010 to support Special Olympics. Our fundraiser involves a mannequin named Ruby. She undresses for every $50 increment of money raised, with the goal of $750. At $750, she will be wearing only her swimsuit - and so will the team when the do the Polar Plunge!