2011 Roth Conversion
Does anyone know if the recent extension of the tax cuts brings back the $100,000 income limitation for Roth conversions?
Does anyone know if the recent extension of the tax cuts brings back the $100,000 income limitation for Roth conversions?
Permalink Submitted by Alan Spross on Mon, 2010-12-20 17:49
No. The waiver of income limits on conversions was made permanent when these provisions were passed in 2005. The income limit for conversions is gone for good after 2009, but still remains for regular Roth IRA contributions. Accordingly, the recent tax bill extending the Bush tax cuts has no affect on Roth IRA income limits.
Of course, Congress could change things back at some point, but a Roth conversion generates instant tax revenue and the Treasury sorely needs that tax revenue so I can’t see this changing anytime soon.