Roth IRA Tango

For 2010, regular IRA's can be coverted to a Roth IRA without any income limitation. Currently, taxpayers with an AGI above $100,000 cannot convert to a Roth.

Here are some tax strategies for high incomers to consider:

• You can set up a regular IRA and make nondeductible contributions and converting to a Roth in 2010. Tax is due on the earnings only.
• You have the option to report half the income in 2011 and the remaining half in 2012.
• If you convert to a Roth early in 2010, you start accumulating earnings tax-free sooner.
• Remember, distributions after attaining age 59 1/2 are tax and penalty free.
• Roth IRAs have no required minimum distributions for people age 70 1/2 and over.

Review these options with your tax professional before implementing a tax strategy. Additional advantages may be available to you.