n years 2008 – 2010, the amounts increase to $5,000 per year ($6,000 for investors age 50 or older but under 70 1/2). As a result, individuals under age 50 can contribute up to $23,000 during that five year stretch or up to $28,The Tax Increase Prevention and Reconciliation Act (TIPRA) recently signed by President Bush eliminates the $100,000 Modified Adjusted Gross Income (MAGI) ceiling and the married taxpayer joint filing requirement for converting a traditional IRA into a Roth IRA, but not until the year 2010. All other rules continue to apply, which means that the amount converted to a Roth IRA will still be taxed as income at the individual’s highest tax rate. Under current law, single taxpayers with MAGI of more than $110,000 cannot contribute to a Roth IRA; or married taxpayers with joint income in excess of $160,000. However, by eliminating the income ceiling for conversions, the income limits on contributing to a Roth IRA have essentially been removed as well.

In 2006 and 2007, individuals can contribute up to $4,000 per year to a nondeductible traditional IRA ($5,000 if age 50 or older but under 70 1/2). In years 2008 – 2010, the amounts increase to $5,000 per year ($6,000 for investors age 50 or older but under 70 1/2). As a result, individuals under age 50 can contribute up to $23,000 during that five year stretch or up to $28,0

a traditional IRA into a Roth IRA, but not until the year 2010. All other rules continue to apply, which means that the amount converted to a Roth IRA will still be taxed as income at the individual’s highest tax rate. Under current law, single taxpayers with MAGI of more than $110,000 cannot contribute to a Roth IRA; or married taxpayers with joint income in excess of $160,000. However, by eliminating the income ceiling for conversions, the income limits on contributing to a Roth IRA have essentially been removed as well.

In 2006 and 2007, individuals can contribute up to $4,000 per year to a nondeductible traditional IRA ($5,000 if age 50 or older but under 70 1/2). In years 2008 – 2010, the amounts increase to $5,000 per year ($6,000 for investors age 50 or older but under 70 1/2). As a result, individuals under age 50 can contribute up to $23,000 during that five year stretch or up to $28,

rent law, single taxpayers with MAGI of more than $110,000 cannot contribute to a Roth IRA; or married taxpayers with joint income in excess of $160,000. However, by eliminating the income ceiling for conversions, the income limits on contributing to a Roth IRA have essentially been removed as well.

In 2006 and 2007, individuals can contribute up to $4,000 per year to a nondeductible traditional IRA ($5,000 if age 50 or older but under 70 1/2). In years 2008 – 2010, the amounts increase to $5,000 per year ($6,000 for investors age 50 or older but under 70 1/2). As a result, individuals under age 50 can contribute up to $23,000 during that five year stretch or up to $28,

its on contributing to a Roth IRA have essentially been removed as well.

In 2006 and 2007, individuals can contribute up to $4,000 per year to a nondeductible traditional IRA ($5,000 if age 50 or older but under 70 1/2). In years 2008 – 2010, the amounts increase to $5,000 per year ($6,000 for investors age 50 or older but under 70 1/2). As a result, individuals under age 50 can contribute up to $23,000 during that five year stretch or up to $28,

n years 2008 – 2010, the amounts increase to $5,000 per year ($6,000 for investors age 50 or older but under 70 1/2). As a result, individuals under age 50 can contribute up to $23,000 during that five year stretch or up to $28,000 if 50 or older. If married, the same contribution limits apply to spouses who can also fund a separate nondeductible traditional IRA. (Reminder: IRS form 8606 must be filed each year a nondeductible traditional IRA contribution is made). Then in 2010, individuals can convert the nondeductible traditional IRA into a tax-free Roth account and have the choice of recognizing all of the conversion income in 2010 or averaging it over 2011 and 2012. At conversion, investors would only be taxed on the earnings that have accumulated in the nondeductible IRA. After 2010, individuals may continue to contribute to a nondeductible traditional IRA and immediately convert to a Roth IRA, thereby effectively wiping out the income limitations on contributions. Investors initiating conversions after 2010 will be responsible for recognizing the income during the year of conversion.

There is one catch: Individu