Re: No MRD for 2009

Dec 31, 2008 4 Replies
A


I believe that the President signed a bill on Dec 23 that waived any


>MRDs for 2009. Can anyone confirm?

That's what I've heard as well.


Also, in 2010, will there be a "free" transfer of IRA money to Roth
>IRA's, or is it just that the income limitations on transfers will be
>waived, but you will still owe income tax on any money transferred?

In 2010 the mAGI limit for converting Traditional IRAs to Roths is lifted. For the conversions done in 2010 only, you will recognize conversion income half in 2011 and half in 2012 unless you affirmatively elect to recognize it all in 2010.

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H

Thanks, I didn't know about the tax implications being spread over 2 years, that will help considerably.

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P

Maybe not. It's not the 2010 "taxes" that get spread into the two other years, it'll be the income hit of the conversion, which will get taxed at whatever the prevailing rates will be in each of those years.

We don't have a clue as to what the tax rates will be in 2010, let alone

2011 and 2012. Most folks are expecting tax rates to increase, and if you expect the tax rates to increase more than the cost of money, paying it now rather than paying it later should be considered.
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H

No clue? (grin) Well, I do.

It's called sundown, or sunset provisions which expire in 2010.

So then, IF "they" are really mean about it, none of the expiring provisions will be extended, and heirs all over will be sitting by bedsides waiting to pull the plug on the iron lung, respirator, etc at

12:58 12/31/2010.

gory indeed. otherwise

Happy NEW ChEAr$~!, ya'll.

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H

Well, since my income level is too high to allow me to convert to a Roth, I will take advantage of 2010 to be able to convert at least part of the regular IRA into the Roth. That will be good for the wife and other heirs of our trust, and it is not like I won't be able to get to the money if needed....

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