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Archive for September 11th, 2009

Posted by taxguru on September 11, 2009

Obama’s top five tax fibs in Wednesday evening speech – Only five?



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2010 IRA Conversions

Posted by taxguru on September 11, 2009

From the latest Intuit ProConnection Newsletter:

Is 2010 “The Year of the Roth”? – After 12/31/09, more people will be eligible to convert conventional IRAs to Roth IRAs as the evil rich clause (AGI over $100,000) expires. 

I pass this along in the spirit of better understanding your available options.  As I have explained several times since Roth IRAs came into being, I am still strongly opposed to these kinds of IRA conversions if they will require you to pay actual taxes in exchange for the promise of future tax free Roth IRA benefits.  If you have other kinds of losses to offset the IRA income so that there are no actual taxes on the conversion, such a strategy might be a good move. 

While the actual Federal taxes on 2010 IRA conversions can be paid with the 2010 1040 or spread out over the 2011 and 2012 1040s, I still have very serious doubts that our rulers will leave the tax free status of Roth IRA income alone for those they deem to be evil rich.  We have seen time and time again where our rulers in DC reneged on promises of this kind and every indication is that they will have no qualm whatsoever about taxing evil rich folks on their Roth IRA distributions even though that was not the way it was supposed to be.


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