Should You Undo Your 2010 Roth IRA Conversion?

Last year (2010) presented a unique opportunity for even high income earners to convert their traditional IRA or 401(k) account to a Roth IRA. I strongly considered doing that for our IRAs but after running some numbers, I decided against it. Many others pulled the trigger on the conversion. Subsequent economic conditions may have created reasons for some to “undo” their Roth IRA conversion.

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Roth IRA Conversion Calculators

Most of you know that 2010 presents a tremendous opportunity for baby boomers with higher incomes to open a Roth IRA and/or to convert a conventional IRA to a Roth. The reason is that the current income limitations on Roth contributions and conversions will be lifted. [Read more...]

Deadline Extended for Returning Required Mininum Distributions

Most retirees know by now that in the Worker, Retiree, and Employer Recovery Act of 2008, Congress waived required minimum distributions in 2009 from IRAs, 401(k) accounts, and certain other retirement plans. The intended benefit was to prevent retirees from being forced to sell invested assets during a severe market decline. [Read more...]

Update Beneficiary Designations in Retirement Plan Documents

Many members of the baby boomer generation are experiencing significant and perhaps abrupt transitions in their family status.  Their children have left home to lead independent lives.  Spouses have retired or perhaps even moved on to become ex-spouses.  Changes in boomer families can create a need for changes in your retirement plan documents.  
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Calculators for IRA Eligibility and Comparison

With tax rates heading up for many baby boomers and with 2010 presenting an opportunity for Roth IRA conversion, funding an IRA in 2008 and 2009 can be an important retirement planning strategy.

IRA funding limits for 2009 have been set for various scenarios and you should consider all of them.

I find it helpful to use online calculators to: (a) help determine whether a taxpayer is eligible for a traditional, Roth, Roth-conversion, and/or non-deductible IRA; and (b) help compare the relative financial benefits of each different IRA type.  I have found two online IRA calculators that I like in particular. [Read more...]