What is all the buzz about Roth conversions in 2010?
Prior to 2010, those above a certain income threshold (generally $120,000 for individuals and $176,000 for married couples) were not permitted to make Roth IRA contributions. Starting this year, that income cap is removed for those who wish to convert non-Roth IRAs into Roth IRA accounts. The amounts converted must be included in taxable income; however, those who convert during 2010 have the option to spread that tax liability equally over two years.
