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
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