In 2009 my husband and I each contributed $ 5,000 to our Roth IRA. We are a good 30 years after retirement. When we our tax return, a few months, we’ve found we had exceeded the limit for Roth and we had these contributions into traditional IRAs recharacterize. Now that 2010 here and there is no income limit for rollovers, we need the taxes on the rollover even though the contributions to pay tax in the year 2009? Another question: If we are to one another each $ 5k for 2010 to traditional IRAs we could post this to the rollover IRAs until the end of FY2010? In other words, it is possible to add funds in 2010 and then rollover? We are above the income limit deductible – so what would then have to pay taxes in this scenario?
With some of the changes made for 2010, people can now convert to a Roth IRA and defer the taxes to 2011 and 2012. In this brief article, we explore some of the things you should consider when determining whether conversion makes sense for you.
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