A review of the 2010 Roth Conversion rules and personal income tax credits currently available.

General Concepts –Roth IRA

• 100% of growth is tax free
• No required minimum distributions (RMD) at age 70½
• $100,000 Modified Adjusted Gross Income (MAGI) limitation to convert
• For 2010 only, the $100,000 MAGI limitation no longer applies
  • Taxable incomerecognized on a 2010 Roth IRA conversion may be spread over the following two tax years (i.e., 2011 and 2012)

Convertible Accounts

• Traditional IRAs
• 401(k) plans
• Profit-sharing plans
• 403(b) annuity plans
• 457 plans
• “Inherited” 401(k) plans/IRA’s