In the past, I went into detail about the differences between Traditional and Roth IRAs. And recently laws were changed, so it’s now easier to convert Traditional IRA accounts into Roth IRAs.
Prior to 2010, only individuals with modified adjusted gross incomes of $100,000 or less could convert to a Roth IRA. Now these limitations will be waived for the 2010 calendar year. Additionally, those that choose to convert to a Roth IRA will be able to spread their tax payments due on the conversion over the next two years. Before making this decision, be sure to consult with a licensed tax advisor.So if you were like many investors and stepped to the sidelines during the tumultuous markets, now may be time to renew your savings habits and consider the benefits of IRAs. In many cases, you can start one with a simple monthly automatic investment plan.