B
Beliavsky
For households that have maxed out 401(k) contributions and have too
much income to make deductible IRA contributions, I have read
recommendations (at http://www.mymoneyblog.com/archives/2009/03/2008-2009-nondeductible-ira-contribution-limits.html
for example) to contribute to a Traditional IRA and to then convert to
a Roth in 2010. In 2010 there are no income limits on such
conversions.
Is this a good idea? I think it depends in part on what investments
one plans. IMO corporate bonds are an attractive asset class at
present, and they are best held in a tax-deferred account.
What is the chance Congress will change the rules for Roth conversions
in 2010? The linked article says that since Roth conversions generate
revenue in the near term, Congress will probably not change the rule.
much income to make deductible IRA contributions, I have read
recommendations (at http://www.mymoneyblog.com/archives/2009/03/2008-2009-nondeductible-ira-contribution-limits.html
for example) to contribute to a Traditional IRA and to then convert to
a Roth in 2010. In 2010 there are no income limits on such
conversions.
Is this a good idea? I think it depends in part on what investments
one plans. IMO corporate bonds are an attractive asset class at
present, and they are best held in a tax-deferred account.
What is the chance Congress will change the rules for Roth conversions
in 2010? The linked article says that since Roth conversions generate
revenue in the near term, Congress will probably not change the rule.