• 2010 Conversion of a Traditional IRA to a Roth IRA
  • November 4, 2009
  • Law Firm: Haynes and Boone, LLP - Dallas Office
  • Currently, only taxpayers with modified adjusted gross income of $100,000 or less (who are not married filing separately) may convert a traditional IRA to a Roth IRA. Beginning January 1, 2010, the $100,000 limitation will be eliminated, and all taxpayers (including married taxpayers filing a separate return) may make such a conversion. The value of the converted IRA in excess of basis (if any) will be included in the taxpayer's income, but the 10% premature distribution tax (before age 59½) will not apply to the conversion. Under current law, earnings of a Roth IRA (like a traditional IRA) are not subject to income tax.