Roth Conversion Check List
Crossing the Social Security taxable income threshold and its effect on the economics of a Roth IRA conversion In my previous articles on this site I rendered an opinion that it is not a good financial decision to convert a traditional IRA with a substantial deferred tax liability to a Roth IRA because of the conversion tax. For most, the opportunity cost of paying that tax in a lump sum upon conversion would probably not be recovered during the owner’s life time. However, my
The Roth IRA Conversion Dilemma
Throughout 2010, you will be awash in conflicting opinions about whether or not converting your traditional IRA to a Roth IRA is a good financial move. By way of background, anyone at anytime can convert a traditional IRA to a Roth if they meet the qualifications. Up until 2010, there had been an adjusted gross income threshold above which you could not convert. That amount was $100,000. In 2010, there is no constraint due to income so now everyone has an opportunity to conve