Roth IRA 2010 Limits: What's the Big Deal? Potentially Tax-Free Wealth for Life...

What do the year 2010 and the Roth IRA have to do with your financial future? It's a combination that could accelerate wealth creation by way of tax-free profits.

Many people have wanted a Roth IRA, but never met, or currently do not meet, the income limit guidelines.

However, the income limits required to convert a Roth IRA will be lifted in 2010. That's right: Roth IRA 2010 limits are changing! You can convert to a Roth IRA and take advantage of all the benefits (tax-free profits, no required distributions) the account has to offer.

If you have a non-Roth retirement account that you want to convert to a Roth IRA, 2010 may be the year that you can begin to zeize upon the Roth IRA advantages that you've been hearing so much about.

Income Requirements to Convert to a Roth IRA

If you do decide to take advantage of the Roth conversion rule in 2010, keep in mind that conversions from non-Roth accounts to Roth IRAs generally are taxable for the year in which the conversions are made.

The good news is that under the new 2010 IRS rule – for the year 2010 only – if you convert an existing retirement account to a Roth IRA, you can split the converted income amount between 2011 and 2012, which means that you would not pay any taxes in 2010 on the amount converted.

Disclaimer: Before converting an existing retirement account, be sure to talk with your tax professional to make sure you have a clear understanding of how the tax rules would affect you.