TIME MAY BE RIGHT TO CONVERT TO ROTH IRA
It might be a good time to think about converting your Traditional IRA to a Roth IRA. Why?
Because after last year’s steep market decline, the value of your IRA may be down significantly - which means the taxes due on the conversion will almost certainly be lower than in previous years.
But if you wait until 2010, you may have an even better opportunity. In most years, you can’t convert a Traditional IRA to a Roth IRA if your adjusted gross income is more than $100,000. In 2010 - and in 2010 only - you can convert your Traditional IRA to a Roth IRA regardless of you income level. Furthermore, the income taxes due on conversion can be spread over two years.
Consult with your tax advisor to determine if a Roth IRA conversion is appropriate. If so, consider taking action this year or next.
Peter Vignati, CFP
Edward Jones
41 East Main Street
Old Avon Village
Avon, Ct. 06001
860-676-1442
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