In 2010 the income limits are waived for converting a Traditional IRA to a Roth IRA. Tax may be deferred to 2011 and 2012.
No, the income limits are off.
The recognition of conversion income over the following two years is a one-time thingie.
No.
Yes, if under age 70 1/2 that year. But if there are some deductible contributions in the traditional IRA, you will have to calculate how much of the conversion is taxable.
Art is 100% correct here. If I may expand on his answer - For Tradition IRAs, regardless of how many difference accounts one may have, they in fact have one IRA, comprised of (potentially) post tax and pretax money. When making a conversion from traditional to Roth, you must add up all you IRA account balances, check 8606 to see how much was post tax deposits, and prorate the conversion to see how much is taxable. This fact is sometimes lost as people may open multiple accounts, and feel they opened a "post tax IRA" in the year they could not take the deduction. Joe
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