ROTH CONVERSION
JUST FOR CLARIFICATION I WOULD LIKE TO KNOW IF THE IRA TO ROTH CONVERSION WILL BE EXTENDED BEYOND 2010 FOR PERSONS WITH JOINT INCOMES OVER $100,000 WHO HAVE NEVER BEEN ELLIGIBLE TO HAVE A ROTH IRA. IT IS UNCLEAR IF THIS CONVERSION FOR HIGH INCOME EARNERS WILL ONLY BE ALLOWED IN 2010 OR IF 2010 IS THE BEGINING YEAR AND IT WILL BE CONTINUED. THIS INFORMATION WOULD BE HELPFUL IN DECIDING WHEN AND IF A CONVERESION MAKES SENSE.
Permalink Submitted by Alan Spross on Tue, 2009-05-19 02:09
2009 is the last year that the 100,000 modified AGI limit applies; after that there is no income limit for conversions. However, 2010 is the only year that conversion income can be reported in subsequent years, ie. 50% if 2011 and 50% in 2012. The income limit for regular Roth contribution will continue to apply.
A 2010 conversion can still be recharacterized up to 10/15/2011 if you change your mind.