2010 may be a great time for boomers to create a tax-free income stream for retirement. This is thanks to the opportunity to complete a Roth conversion without income limits (current limit is $100,000). This elimination of income limits was part of the Tax Increase Prevention and Reconciliation Act of 2005.

However, in a recent survey, 73% of boomers who own a traditional IRA are not planning to convert to a Roth IRA next year. A lack of knowledge about Roth conversions could be to blame. 57% of high income boomers are not aware that income limitations on conversions will be eliminated in 2010.

To learn more, or see if a conversion is right for you, feel free to contact us or post a reply to this blog.

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Source: Journal of Financial Planning