To Convert or Not to Convert? Should You Roth for Retirement?

In 2010, going tax-free by converting to a Roth IRA for retirement is a hot topic covered by Business Week Magazine recently. Such a move could save thousands of dollars later in life, say financial experts across the board, pointing to federal and state taxes that are likely increase.

Currently tax rates are at 25 to 35 percent, but if taxes are increased, the rates could go as 45 percent in 2011, and that’s quite a bit of cash to dole out in one’s golden years.

In 2010, those in the annual wage bracket of $100,000 and up may convert from a traditional IRA to a tax- free Roth IRA, according to Bernadette Holland, a certified financial planner, and vice president of the Holland Group, Janney Montgomery Scott, Bethlehem, PA. Holland hosts seminars in her area for those qualified candidates interested in learning more about the changes in federal codes.

One glitch, to convert to a Roth IRA, one needs $35,000 to do so.

In addition to speaking with a qualified financial planner, Holland also suggests interested individuals to inquire about converting to a Roth IRA with their attorney and CPA.

For more information about The Holland Group, Janney Montgomery Scott, visit visit http://www.jmsonlinefc.com/thehollandgroup/