most recent 30 from http://www.thedailysaver.com 2010-08-01T07:09:17Z http://www.thedailysaver.com/feeds/question/7 http://www.creativecommons.org/licenses/by-nc/2.5/rdf http://www.thedailysaver.com/questions/7/whether-to-convert-traditional-ira-to-roth-in-2010 John 2010-01-21T18:28:24Z 2010-07-24T10:24:03Z

<p>My understanding is that calendar year 2010 is the first time there are no restrictions on converting an IRA to a Roth IRA. </p> <p>In short, whatever amount converted is treated as regular income for tax year 2010 so you have to pay tax on it but then it can grow tax free forever.</p> <p>Do you think the authorities could change the rules and tax it again later? </p> <p>If one believes tax rates will be higher in the future, isn't conversion now a no-brainer? </p>

http://www.thedailysaver.com/questions/7/whether-to-convert-traditional-ira-to-roth-in-2010/11#11 Brian D. 2010-02-20T04:36:33Z 2010-02-20T04:36:33Z

<p>Overall tax rates may be higher in the future, but you have to consider whether your personal tax rate will be. For example, when you retire and withdraw from your 401k, you may not have a house payment so may be able to live on much less and thus pay less taxes. If you can afford to take the tax hit now, it might be safe to do so, since you don't know what your situation will be in the future. </p> <p>Personally, I like the idea of having some money stashed away that won't be taxed. I understand your concern that the law could be changed to tax a Roth, but the law could also be changed to tax normal IRA withdrawals at a higher rate so I don't know if you can go by that.</p> <p>That said, I'd like to hear more answers from actual financial advisors or accountants because I'm sure there's a formula or at least a rule of thumb to apply.</p>