Limits on Roth IRAs end January 1, 2010
As of January 1, 2010, individuals with an adjusted gross income of $100,000 or more can convert an existing IRA or 401(k) into a Roth IRA. Previously, only those who made less than $100,000 could convert. A Roth IRA is an account where the fund accumulate tax free and are also distributed tax free. The down size to converting is having to pay tax upfront. Because contributions to traditional IRAs get a tax deduction, you must pay the taxes due on those initial contributions as well as any growth in the IRA.
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