SunGard Relius posted an FAQ in a Technical Update on January 12, 2010 titled, "ROTH IRAs-Part 1: 2010 Law Changes and Retirement Savings Opportunities". As an independent third party administrator of 401(k) and other types of tax qualified employee retirement plans, Baden provides this information to assist plans sponsors and plan participants in gathering information on Roth IRA Conversions and Roth IRA Rollovers. Plan sponsors and participants should contact their tax professional with specific questions on conversion issues; they should contact Baden with questions on the impact of this feature in a tax qualified employee retirement plan.
The FAQ addresses the following questions:
- How did the law change regarding conversions to Roth IRAs?
- How do I convert a traditional IRA to a Roth IRA?
- What are the tax consequences of converting a traditional IRA to a Roth IRA?
- Is there a special taxation rule that applies for 2010 conversions?
- Does the law change discussed in question #1 mean that I can begin contribution annually to a Roth IRA without regard to my income?
- If my adjusted gross income prevents me from making a Roth IRA contribution, can I still take advantage of the Roth conversion rules?
Please contact us to discuss the impact of new Roth IRA law changes on a 401(k), 403(b), or other type of tax qualified employee retirement plan. Please contact a tax professional with questions on the tax implications of converting a traditional IRA to a Roth IRA. |