New IRA Conversion Rules:
Starting this year, anyone-regardless of income-can convert a Traditional IRA to a Roth IRA. In the past, people whose adjusted gross income was more than $100,000 were unable to take advantage of this tax strategy. If you decide to convert, you will have to pay income taxes on the amount converted to a Roth IRA, excluding the amount of any after-tax contributions you may have made.
For conversions in 2010 only, Congress has approved a special rule allowing you to treat half of the income from the conversion as received in 2011 and the other half in 2012. But future withdrawals from a Roth IRA that include earnings are free from federal income tax after you’ve had the account for at least five years and reached the age of 59 ˝.
Your individual circumstances are the most important considerations. Meet with your financial adviser and tax consultant before making any decision on converting your traditional IRA.
Is a Roth-IRA right for you?
It is never to early to plan for your retirement and since 1998 congress has made available to wage earners the Roth-IRA. This IRA enables wage earners to contribute money up to the maximum limits (set by the federal government) into the IRA and earn tax-free interest on these contributions. With the volatility of today’s Stock Market, the Roth-IRA is a secure and safe investment with high tax-equivalent returns. Stop in at ACBLA for all the details and let us set up a tax free Roth-IRA for you.
ACBLA will be closed on the following dates in 2010:
Saturday, September 4th and Monday, September 6th for Labor Day Weekend
Monday, October 11th for Columbus Day
Thursday, November 11th for Veterans' Day
Thursday, November 25th for Thanksgiving Day
Saturday, December 25th for Christmas Day