Weigh Cost of Converting to Roth IRAs

November 18, 2010 – In The News
Finger Lake Times

Recent shifts in tax laws, including the possibility of ending the Bush-era cuts, add urgency to year-end tax strategy planning, especially when considering converting from a traditional to a Roth IRA. Anyone converting to a Roth IRA in 2010 has the option of either paying the income tax owed on the traditional IRA in 2010 or deferring it until 2011 and 2012.

Susan Jordan noted that spreading the income over two years reduces the likelihood of the conversion pushing the taxpayer into a higher marginal bracket.