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.
This information in the Financial Tips section is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.