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New Wealth Preservation Opportunity for the Affluent

Tax law signed on May 17, 2006 by the President lets all investors convert a traditional IRA to a Roth IRA starting in 2010. Review your estate plans now and see if this will benefit you.

Currently, taxpayers can convert a traditional IRA to a Roth IRA only if their adjusted gross income does not exceed $100,000. The just-signed tax act removes the income limitation beginning in 2010, allowing individuals of any income level to make a Roth conversion. Upon a full or partial conversion, a taxpayer reports any deductible contributions made to an IRA and any earnings as taxable income in the current year. Any distributions from the Roth after age 59 - and a five year waiting period are then tax-free, including all profits earned in the account.