Roth Conversions for 2010
Tuesday, January 12th, 2010Beginning January 1, 2010, the income and filing status requirements for rollovers (including conversions) to a Roth IRA was eliminated. Additionally, for rollovers to a Roth IRA in 2010 only, a special 2-year option for exposure taxable parts of your rollover apply.
Under the new rules, regardless of your income or filing status, you can roll over (convert) the following to a Roth IRA:
- Your traditional individual retirement arrangement (IRA), SEP IRA or SIMPLE IRA, and self-directed IRAs;
- an Eligible Rollover distribution (ERD)- For example, a 401(k) or a 403(b) plot; or
- an Eligible Rollover from a retirement plot for which you are a beneficiary (from deceased family limb, for example).
For rollovers and conversions to a Roth IRA in 2010 ONLY, you have the option of exposure the taxable part of your rollover in your yucky income for 2010, or exposure half in 2011 and half in 2012.
Previously, to roll over to a Roth IRA, both of these requirements needed to be met; your modified AGI was less than $100,000 and your filing status was not married filing separate.
