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Smart Ways To Save - NO.6
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eve
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6.Play The Conversion Game High-income folks who aren't eligible to open a deductible or Roth IRA are allowed to open a nondeductible IRA instead. Earnings are tax-deferred, not tax-free as they are in a Roth. Is it worth it? Sometimes. Under current law, starting in 2010, anyone--no matter what their family income--will be able to convert a pretax or aftertax IRA into a Roth. Those doing conversions in 2010 get a special break: They can recognize the income from the IRA withdrawal in two installments, in 2011 and 2012. This bizarre two-year allocation owes its life to a congressional budget gimmick.


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  • 29 Aug 2008 01:12
    Post 2 of 3
    rainybaggio
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    Quoting from [eve]:

    6.Play The Conversion Game High-income folks who aren't eligible to open a deductible or Roth IRA are allowed to open a nondeductible IRA instead. Earnings are tax-deferred, not tax-free as they are in a Roth. Is it worth it? Sometimes. Under current law, starting in 2010, anyone--no matter what their family income--will be able to convert a pretax or aftertax IRA into a Roth. Those doing conversions in 2010 get a special break: They can recognize the income from the IRA withdrawal in two installments, in 2011 and 2012. This bizarre two-year allocation owes its life to a congressional budget gim .


    good !
    31 Aug 2008 23:15
    Post 3 of 3
    [em20]Quoting from [rainybaggio]:

    Quoting from [eve]:

    6.Play The Conversion Game High-income folks who aren't eligible to open a deductible or Roth IRA are allowed to open a nondeductible IRA instead. Earnings are tax-deferred, not tax-free as they are in a Roth. Is it worth it? Sometimes. Under current law, starting in 2010, anyone--no matter what their family income--will be able to convert a pretax or aftertax IRA into a Roth. Those doing conversions in 2010 get a special break: They can recognize the income from the IRA withdrawal in two installments, in 2011 and 2012. This bizarre two-year allocation owes its life to a congressional budget gim .


    good !


    A
    02 Sep 2008 23:14
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