Has anyone here done much thinking/modeling around the 2010 Roth conversion opportunity?
For those not aware, there is a one time exception to Roth IRA conversion income limits in 2010. Anyone can convert his traditional IRAs (or SEP IRAs) to a Roth that year. Interestingly, the tax bill can be deferred, with half due in 2011 and half due in 2012.
I've done some math on this myself lately and for me it seems like it will be a worthwhile exercise. Of course one has to make a series of assumptions as part of the calculations, but in my case it seems like it will most likely be advantageous to do the conversion.
Has anyone given this much thought?
For those not aware, there is a one time exception to Roth IRA conversion income limits in 2010. Anyone can convert his traditional IRAs (or SEP IRAs) to a Roth that year. Interestingly, the tax bill can be deferred, with half due in 2011 and half due in 2012.
I've done some math on this myself lately and for me it seems like it will be a worthwhile exercise. Of course one has to make a series of assumptions as part of the calculations, but in my case it seems like it will most likely be advantageous to do the conversion.
Has anyone given this much thought?