Converting traditional to Roth IRA

steviekm3 · Joined: 25 Feb 2008 Posts: 3

Hi,

I have heard that in 2010 people are able to make a one time
conversion of the traditional to the roth ira. So if you earn too
much to be allowed to get a Roth IRA does this mean that in 2010 you
can get a Roth IRA ?

Does this mean people that have had a traditional IRA every year for
the last how ever many years can do the conversion in 2010 no matter
what their current income level ?

Thanks.
Steve.

Archived from group: misc>taxes

D. Stussy · Joined: 25 Aug 2007 Posts: 126

"steviekm3" wrote in message@71g2000hse.googlegroups.com...
> I have heard that in 2010 people are able to make a one time
> conversion of the traditional to the roth ira. So if you earn too
> much to be allowed to get a Roth IRA does this mean that in 2010 you
> can get a Roth IRA ?
>
> Does this mean people that have had a traditional IRA every year for
> the last how ever many years can do the conversion in 2010 no matter
> what their current income level ?

Not exactly "one time" but yes, a conversion without income limits will be
available in 2010. Recognition of conversion income will be over 2 years.

Phil Marti · Joined: 25 Aug 2007 Posts: 2520

"steviekm3" wrote:

> I have heard that in 2010 people are able to make a one time
> conversion of the traditional to the roth ira. So if you earn too
> much to be allowed to get a Roth IRA does this mean that in 2010 you
> can get a Roth IRA ?

As the law stands today the income limit disappears forever in 2010. The
one-time feature is the election to split 2010 conversion income between
2011 and 2012.

--
Phil Marti
Clarksburg, MD

steviekm3 · Joined: 25 Feb 2008 Posts: 3

On Feb 25, 2:41 am, "Phil Marti" wrote:
> "steviekm3" wrote:
>
> As the law stands today the income limit disappears forever in 2010. The
> one-time feature is the election to split 2010 conversion income between
> 2011 and 2012.
>
> --

So in 2010 then the current law is every year starting then I can
open
a Roth IRA no matter what I earn ?

Right now I never had a traditional ira. Just maxed out a very
good 401k plan. I just opened a traditional ira for 2007 and
2008 and will do so for 2009 and 2010 and convert them to Roths
in 2010. Hopefully every year after I can open another roth ira.

Thanks.

Phil Marti · Joined: 25 Aug 2007 Posts: 2520

"steviekm3" wrote:

> So in 2010 then the current law is every year starting then I can
> open
> a Roth IRA no matter what I earn ?
>
> Right now I never had a traditional ira. Just maxed out a very
> good 401k plan. I just opened a traditional ira for 2007 and
> 2008 and will do so for 2009 and 2010 and convert them to Roths
> in 2010. Hopefully every year after I can open another roth ira.

You can, but why do you want so many different accounts? You can have as
many as you like, but it will probably be more cost-effective, and
definitely easier to track, if you maintain only a couple at most.

--
Phil Marti
Clarksburg, MD
..

steviekm3 · Joined: 25 Feb 2008 Posts: 3

On Feb 25, 5:54 am, "Phil Marti" wrote:
> "steviekm3" wrote:
>
> You can, but why do you want so many different accounts? You can have as
> many as you like, but it will probably be more cost-effective, and
> definitely easier to track, if you maintain only a couple at most.
>
> --

Did not know that I could just keep adding to the same account.
Thanks for the info. Now I have to decide what to put the money
into. 401k is basically all stock mutual funds.

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