Conversion to Roth IRA

Restricted from a Roth IRA? Not Anymore

Starting 2010, more people can convert to a Roth IRA. That's because income limits and tax-filing restrictions go away!

Roth Conversion Details

• Who: All taxpayers, regardless of income or tax-filing status

• What: Conversions from a traditional, SEP or SIMPLE IRA – or qualified rollover contributions from an employer plan (401(k), 403(b), etc.) – to a Roth IRA

• When: Starting January 1, 2010

• Why: Take advantage of tax-deferred growth and tax-free withdrawals.1 No required minimum distributions.2
  

Act Now
Converting to a Roth IRA has many potential benefits. But there are important things to consider, such as your retirement goals, account status and potential tax implications. Taxpayers who convert to a Roth IRA in 2010 have the option to report 50% of the taxable conversion in 2011 and 50% in 2012. In subsequent years, taxpayers will have to pay all taxes in the year they convert.

Consult our offices and ask your tax advisor, as not all states have adopted the federal rules, and there may be differences in federal and state taxation of a Roth IRA conversion.

1 Must be qualified Roth IRA distributions.

2 Applies to the original account owner only. Beneficiaries would be required to withdraw required minimum distributions.
State tax treatment may vary.


Are You Conversion Bound?

Talk to someone at Tahim and Associates about the Roth IRA conversion and whether it's right for you.

Ready to talk to someone now? Call Tahim and Associates at:

714-772-4744