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Converting a traditional IRA to a Roth IRA
Because of several Acts signed by the President this past year (the Tax Increase Prevention and Reconciliation Act and the Pension Protection Act), people saving for their retirement using a traditional IRA, which allows you to deduct the contribution to the account from your taxes, will be allowed to convert those plans to a non-deductible Roth IRA in 2010. The questions are whether the idea of deferred taxes are worth the effort. The short answer is no ­ unless you have a very small traditional IRA account.

You will be required to pay the taxes on a coverted IRA but these can be spread out over several years. It is best to leave those accounts alone, open a new Roth IRA and let the taxable gains on your traditional plan pay for the gains on your Roth IRA.