IRA-To-Roth Conversions Explode After Income Limit Lifted

Law360, New York (January 6, 2014, 4:23 PM EST) -- Wealthy taxpayers seeking favorable tax treatment of their retirement accounts converted $64.8 billion from traditional individual retirement accounts to Roth IRAs in 2010 — nearly 10 times greater than 2009's figures — after Congress eliminated income restrictions on Roth conversions, the Internal Revenue Service said Friday.

Before 2010, individuals could not convert to Roth IRAs unless they had an adjusted gross income of less than $100,000. When Congress lifted the restriction, however, millionaires benefited the most, and 10 percent converted their traditional accounts in 2010, compared...
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