I am evaluating if it make sense for a client to convert from her IRA to a ROTH. She was laid off so now her tax bracket will drop a bit.

My question is, when we do the Conversion we want to have the Taxes paid from the IRA (not out of pocket). Will this transaction have a 10% penalty since she is 53 this year?

It is not likely she will need to take money later from the ROTH, she has other money saved and will take it from their Trust account if necessary, but he has started her own business and seems to be able to cover her bills. They also fall below the AIG issues now that she does not have an income.

Barbara Wood