As 2010 winds down, you might be considering a Roth IRA conversion. 2010 is different than other years because the income restriction on conversions has been lifted. Last year, if you had an adjusted gross income over $100,000 then you couldn’t convert a Traditional IRA to a Roth IRA. While this limit may seem high, remember that the limit applies to both singles and married couples. Many more tax filers who are looking to convert are married filing jointly with an AGI above $100,000. The 2010 conversion loophole lets those taxpayers convert (whether or not you should convert is a totally different story).
Zapeta emailed me the other day asking me if I could do a mini-roundup of all the 2010 Roth IRA conversion posts I’ve written and so here it is!
2010 Roth IRA Conversion Rules  – This post covers the loophole itself as well as some of the rules and considerations involved with a Roth IRA conversion. It briefly goes into whether or not you should convert, including tax rules and implications of a conversion. It’s the most comprehensive post of the bunch.
Four Factors to Consider Before Roth IRA Conversion  – This post goes into greater detail on the decision process in conversion, specifically the things you need to think about before you convert. It’s not always a win-win situation, especially if you start taking tax credits or deductions off the table because of your increased income (you claim income on the conversion amount).
Consequences of a Large Roth IRA Conversion  – Along the same lines as the above post, this discusses consequences of a large Roth IRA conversion.
Roth IRA Workaround: 2010 Conversion Limit Loophole  – This post was written in 2008, when we first learned about the loophole. I included it for posterity. 🙂
Roth and Traditional IRA Contribution Limits  – This post discusses the Roth and Traditional IRA contribution limits and isn’t specifically directed at the Roth IRA conversion (there is no limit on how much you can convert).
I hope that helps!