I just read your original post and noticed that you said your accountant told you that the income limits for Roth contributions end next year.
Someone correct me if I'm wrong, but I think that's not quite correct. The income limits (I think these are currently at $156-166K for married filing jointly) for yearly contributions are not being abolished.
What is happening is that in 2010 (not next year), the income limits for converting a traditional IRA to a Roth will be abolished. Currently, you have to have MAGI under $100k to convert a traditional IRA to a Roth. In 2010 everyone will be eligible to convert regardless of their MAGI. This has made it advantageous to contribute non-deductible amounts to a traditional IRA now, with a plan to convert those to a Roth in 2010. At that time, you will only have to pay tax on any earnings in the account on top of your non-deductible contributions, and all earnings from then on will be tax-free (assuming the gov't doesn't decide at some later date to tax Roth withdrawals).
Someone correct me if I'm wrong, but I think that's not quite correct. The income limits (I think these are currently at $156-166K for married filing jointly) for yearly contributions are not being abolished.
What is happening is that in 2010 (not next year), the income limits for converting a traditional IRA to a Roth will be abolished. Currently, you have to have MAGI under $100k to convert a traditional IRA to a Roth. In 2010 everyone will be eligible to convert regardless of their MAGI. This has made it advantageous to contribute non-deductible amounts to a traditional IRA now, with a plan to convert those to a Roth in 2010. At that time, you will only have to pay tax on any earnings in the account on top of your non-deductible contributions, and all earnings from then on will be tax-free (assuming the gov't doesn't decide at some later date to tax Roth withdrawals).
