Best Roth IRA For Retirement
The 2010 Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act 2010 that Barak Obama signed into law last contained some retirement-planning opportunities for your account. There is a two-year extension that is one of the best Roth IRA conversion deals in years. The Bush tax cuts have also been extended through 2012, and the rates for 2011 and 2012 remain the same, but the brackets themselves are slightly higher due to the built-in inflation adjustments.
This benefits those who converted traditional IRAs to Roth IRAs in 2010, which is the first year that high-income IRA owners could make Roth conversions. Now in 2011, those who did Roth IRA conversion must finally decide which option to choose by the due date for the 2010 tax return, and once it's made, it's irrevocable. Deferring the income from a 2010 conversion equally over 2011 and 2012 becomes the best option, all other factors being equal.