Date of Original Version
Abstract or Table of Contents
Beginning in 2010, all individuals, regardless of income level, will have the opportunity to convert their traditional IRAs into a Roth IRA by paying the ordinary income tax on the market value (at the time of conversion) of the assets being converted. Many individuals are contemplating whether a Roth conversion is in their best interest and need guidance in making this important decision. This paper discusses the costs and benefits of converting to a Roth IRA, derives the conditions under which a Roth conversion is beneficial for an individual, and provides some numerical examples.