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Saturday, February 20, 2010

Roth IRA - 2010 Conversion - Tax Savings

Income taxes are complex and Albert Einstein states it simply:

              “The hardest thing in the world to understand is the income tax”~ Albert Einstein

With the 2010 Conversion rules there can be benefits to the long term investor.  I have read multiple articles and consulted with friends and family.  I highly recommend when contemplating a decision of conversion to seek professional advice.  You would not medically operate on yourself and your long term investing should be treated with the same care.

The following are items to consider when evaluating a potential conversion:
  • Evaluate your IRA and 401(k)
  • Seek Professional Advice
  • Analyze financial and tax factors
  • Calculate tax due
  • Evaluate timing of tax payments
  • Consider the timing of conversion

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