2010 Roth IRA Income Limits Removed

mymoneyblog.com

3 points·mshafrir··5 comments

This article claims that the income limits for contributing to an Roth IRA has been removed for 2010. I was under the impression that the limit was removed for _converting_ a traditional IRA to a Roth IRA. See http://www.money-zine.com/Financial-Planning/Retirement/2010...

Effectively, individuals that aren't eligible to contribute to a Roth IRA in 2010 can contribute to a non-deductible traditional IRA, then take advantage of the conversion limit removal for 2010 and convert the traditional IRA directly into a Roth IRA. So, it's not quite as easy as simply contributing to a Roth IRA directly.

Yes. Also, the commentary about traditional IRS amounts "assumed to be 50% pre-tax and 50% post-tax" seems totally muddled to me. All traditional IRA amounts are pre-tax, AFAIK. Given this and the error about phase-outs, I wouldn't trust this blog post's summaries at all. Go to the IRS source or other better writers.

According to the comments, this article is just wrong according to the current IRS web site.

cloudkj's comment here seems to be correct.

If you make hundreds of thousands of dollars a year, what difference is $5k in a Roth going to make? "great news" seems a little overblown.

This headline, and the blog post, are so wrong I'm flagging so noone else wastes time misled by the headline.

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