Roth Conversion in 2011?


Hi Quincy.  I’m hoping you can give me your take on 2011 Roth conversions.  I have spoken to Nathan and Ryan and they seem to have different perspectives on this.  I have already done one Roth conversion this year and have recently closed on another property which I would like to convert to a Roth in 2011.  Nathan seems to think that this should not be a problem yet Ryan feels that it is unlikely that they will be allowed in 2011 (assuming I exceed that income limitations).  Is there any actual rules in place for 2011?  What are your thoughts on this?  Since we are very near year end I’d appreciate a response ASAP.. Thank you. (This question came in in 2010 where we now know the conversion rules for 2011)


Yes, I can.  The rules as they stand right now are that the $100,000 income limitation for converting to a Roth IRA has been permanently removed, which means that unless Congress changes the rules you will be able to convert in 2011.  The decision to convert or not is a complex one which can be affected by other tax issues, so you should always consult with your tax advisor before making a final decision.

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