I saw a recent article by Suze Orman November 30 2006 where she indicated the ability to convert the traditional IRA account into the Roth IRA with the only taxable amounts being those of gains on the account. Her quote is as follows;"A Can't-Miss OpportunityNow that I have your attention, here's the deal: This past spring, Congress passed a new law that will make it possible for everyone -- regardless of income -- to convert their IRAs into a Roth IRA beginning in 2010".I have been unable to find any other information about this as I was thinking doing this gradually by taking the tax hit over a period of years. If I can do this as a one time conversion, I would like to do so. Has anyone seen more detailed information about this change?
Please refer to the following at http://www.rothira.com/;On May 17, 2006, President Bush signed the Tax Increase Prevention and Reconciliation Act of 2005 into law. This tax bill included a provision dealing with conversions of traditional IRAs to Roth IRAs. Starting in 2010, the existing $100,000 income test for converting a traditional IRA to a Roth IRA will no longer apply. Conversions that occur in 2010 will be able to have half of the taxable converted amount taxed in 2011 and the other half taxed in 2012. For additional information, see the statutory provisions and the conference report.I hope this helps.Dwnwthvwls
Suze was talking about a non-deductible IRA, not one that has deductible contributions in it. It would really only be for people that can't contribute to a Roth already.I assume this is the article you mean:http://finance.yahoo.com/expert/article/moneymatters/16201If so, check out the comments. She leaves out a very key point or two. The second one (2nd from the bottom that is, as they're in reverse chronological) is mine (the one by 'Fred'). Rather than repeat myself, I'd appreciate it if you just went there (you may have to click 'Next' on the front page to see all comments).Although I'm glad to see that numerous other commenters made the same point.
Thanks it does help seeing the additonal information.
I appreciate the info on this. It looked too good to be true. Thanks
kahunacfa writes,I don't pay very much attention to anything Suze Orman has to say. I would not walk across the street to hear her talk.Kahuna,CFA I'm very surprised to hear that.I'm sure that at some price level, Suze Orman would be a four-bagger over three to five years like the rest of your recommendations.intercst