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A big change is expected on the landscape of retirement planning in 2010.

At the hearing, the 2010 Roth IRA conversion rule changes seems relatively unimportant.

However, as we shall see, a small change can have enormous consequences. In fact, as a result of changes in Rules 2010, any person (regardless of income) will be able to …

1) Convert a Roth and / or
2) In fact, contribute to a Roth

Currently, the IRS restrictions on personal income, reduces the ability of high-income individuals to convert or contribute to a Roth IRA. But it's all about to change …

That this rule change is monumental on the horizon?

Is elimination of the restriction in IRS revenue Roth conversion.

AGI limit for Roth IRA conversion

According to current law, which is only conversion if your adjusted gross income (AGI) is $ 100,000 or less. If you happen to win more than $ 100,000 a year, you can not perform a conversion.

However, from 2010, the $ 100,000 AGI limit disappears.

That's right. Just go away!

Now keep in mind that Congress may change its mind and reinstate the $ 100,000 AGI limit at any time. But from that time gave no indication to do so.

Accordingly, any person (regardless of income) can make a Roth conversion from January 2010.

For example, say you have a traditional IRA, and you earn $ 152,000 per year. In 2009, you can not convert your traditional IRA, because your adjusted gross income exceeds $ 100,000. But in 2010, you can convert your traditional IRA to a Roth because the maximum adjusted gross income is gone!

But the implications of the 2010 rule change beyond their ability to perform a simple conversion. The rule change that actually affects their ability to contribute to a Roth if they earn above the current limits to contribute …

Restrictions on real income Roth IRA

Under current law, the IRS limits the Roth IRA contribution eligibility those with an income that falls within a predetermined range.

For example, in 2009, the IRS limits contributions to a Roth IRA are …

• $ 176,000 if you are a married joint statement.
• $ 10,000 if married filing separate tax return and you lived with your spouse for part of the year.
• $ 120,000 if you are single, head of household or married filing separately and not living with their spouse for part of the year.

Under current law, if you earn more than the limit for an individual having the status tax return, you are not eligible to contribute a penny to your Roth.

And although the change limits from year to year, the income limit for Roth IRA restrict who can and can not help will not disappear in 2010.

However, in fact, Roth IRA contribution limits income does not go away …

To find out how, read more about the 2010 Roth IRA conversion rules by visiting Britt Gillette’s website, Your Roth IRA, a site focused exclusively on helping people with self-directed Roth IRAs.