March 1, 2010 / Law Alert

Retirement Planning in 2010: Changes to the Roth IRA Conversion Rules

Effective January 1, 2010, taxpayers with traditional IRAs may convert to Roth IRAs regardless of their modified adjusted gross income (“AGI”) or income tax filing status. Passed as part of the Tax Increase Prevention and Reconciliation Act of 2005, this recently effective law may provide a significant retirement and estate planning opportunity, but taxpayers must remember that converting is not the best option for everyone. Before converting, taxpayers must carefully consider their particular circumstances.