2010 conversion to Roth IRA

[js1000]

Hello,

Recently media have started recommending opening non-deductable IRAs for people who do not qualify for traditional IRAs, so that in 2010 they can convert to Roth IRAs (per 2006 tax law change). My question is does anyone worry that this law can change or be canceled by Democrats as part of rolling back Bush tax-cut plans? In other words, what are the chances that people may get stuck with non-deductable IRAs and not be able to convert due to law changes by the time 2010 come around?

Thank you

Justin

 

[youbet]

Yes, that worry has come to mind.

The Dems probably won't change dates and/or requirements because doing the conversion generally generates tax revenue, something they won't want to stop.

Even if they did change the rules, a non-deductible IRA can be useful.

 

[Maurice]

I agree with youbet - this is a short-term revenue generator, I don't see it being at risk regardless of who takes over.

I personally intend to take full advantage of it.