Almington
Blood Boiling with Rage and Hate
Re: Financial Advice, 401k's, IRA's, Hiding it under a mattress...
Congress repeal the income limits in the Pension Protection Act of 2006 effective for 2010. Theoretically, the IRS could void the conversion stating that when you made the contribution you intended all along to convert it to a Roth and circumvent the rules provided that they were made nearly simultaneously (step transaction doctrine) but as yet have not (and may never).
The only downside is that if you have significant deductible IRA funds than the conversion isn't going to be the best idea as the IRS considers all IRA funds as a single pot so you will still have to pay taxes on the deductible portion converted.
Congress repeal the income limits in the Pension Protection Act of 2006 effective for 2010. Theoretically, the IRS could void the conversion stating that when you made the contribution you intended all along to convert it to a Roth and circumvent the rules provided that they were made nearly simultaneously (step transaction doctrine) but as yet have not (and may never).
The only downside is that if you have significant deductible IRA funds than the conversion isn't going to be the best idea as the IRS considers all IRA funds as a single pot so you will still have to pay taxes on the deductible portion converted.
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