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New Law Makes 2010 Roth IRA Conversions Possible—Income No Longer a Factor
Wisconsin Legislature adoped these new Roth IRA rules on March 15, 2010. Now, anyone can enjoy the benefits of converting Traditional IRAs to Roth IRAs through Section 512 of the Tax Increase Prevention and Reconciliation Act (TIPRA).
Previously, singles and couples earning more than $100,000 annually were unable to convert. The new law makes it possible to take advantage of converting despite annual income.
Learn the benefits of converting Traditional IRAs to Roth IRAs
- Traditional IRA contributions are tax deductible;* however, withdrawals are taxed as income in retirement. Roth IRA contributions aren't tax deductible, but contributions aren't taxed at the time of withdrawal.
- With a Roth IRA, you don't have to take minimum distributions at age 70 1/2. This lets you create an income- tax-free account for your heirs.
- If you convert all or a portion of your Traditional IRA to a Roth IRA, you'll have to pay taxes on the converted amount. However, for the year 2010 only, the income taxes due on the 2010 conversion can be spread over two years and would be payable in 2011 and 2012.
Our Investment Services financial consultants can help you determine what type of IRA is right for your situation. Call 800-533-6773, ext. 2107, to schedule a no-cost, no obligation appointment.
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* LPL Financial and its representatives do not provide tax advice. Please consult your tax advisor for information concerning your specific situation prior to undertaking an investment plan.
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