Traditional IRA roll over to Roth

Hi Ncmohan,

Only the income limit goes away in 2010, i.e., if you have earned more than $100K, even then you can do a Roth conversion and pay taxes as ordinary income.

This is really a question for a certified financial advisor. Some of the items they'll likely want to explore with you are:

- What is your 2010 expected income (before conversion)
- Are you going to pay the Roth conversion tax bill will taxable funds or use Roth distribution funds?
- What is your expectations for your tax bracket level in subsequent years?
- Do you have heirs that you want to eventually receive the funds (converting will lower tax for his estate)?
- Adding more income from the conversion could increase taxation of Soc Security payments and also reduce a whole host of itemized deductions

If you don't need the $ to live on for a while, are in a lower tax bracket and can pay the taxes from $'s with taxable accounts it *may* makes sense to convert, but every situation is different.

Since this is a big decision you may want to discuss it with another certified financial planner - you can find one here:

https://www.newretirement.com/Services/Professional_Financial_Advisors.aspx

Some other useful links:
http://www.fool.com/investing/ira/2008/05/29/stiff-the-irs-for-the-next-100-years.aspx

http://www.fairmark.com/rothira/rollcons.htm

Best,

NewRetirement

Please note - this should NOT be construed as financial advice - you should seek out the advice of a licensed professional.