Roth ConversionmichnoelThe document discusses the benefits and considerations of converting a traditional IRA to a Roth IRA. It notes that lower account values currently make conversions attractive. Converting now allows one to lock in today's low tax rates and take advantage of special tax treatment in 2010 and 2011 when income limits on Roth IRA conversions are eliminated. Key benefits of converting include tax-free withdrawals in retirement, allowing heirs to stretch out required minimum distributions, and diversifying retirement income sources for tax purposes.
Roth ConversionmichnoelThe document discusses the benefits and considerations of converting a traditional IRA to a Roth IRA. It notes that lower account values currently make conversions attractive. Converting now allows one to lock in today's low tax rates and take advantage of special tax treatment in 2010 and 2011 when income limits on Roth IRA conversions are eliminated. Key benefits of converting include tax-free withdrawals in retirement, allowing heirs to stretch out required minimum distributions, and diversifying retirement income sources for tax purposes.