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By Rachel Haig | 12-16-2009 01:24 PM

Should You Convert to a Roth IRA in 2010?

Morningstar director of personal finance Christine Benz on when converting makes sense--and when it's better to stay put.

Rachel Haig: I'm Rachel Haig for A new tax provision has created new opportunities for Roth IRA conversions in 2010. Here with me to discuss this is Morningstar's director of personal finance, Christine Benz. Thanks for joining me, Christine.

Christine Benz: Hi Rachel, nice to be here.

Haig: So, what's the special opportunity in 2010?

Benz: Well, right now, in 2009, you have to have income of less than $100,000 to be able to convert your traditional IRA assets to Roth. Beginning in 2010, though, anyone of any income level will be able to make the conversion. And the other great thing about converting in 2010 is that you'll be able to split the tax hit associated with that conversion over 2011 and 2012. So that will help ease the pain a little bit.

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