Hedging Regulatory and Tax Risk through a Roth IRA Conversion
Income limits on Roth IRA conversions are set to go away in 2010.
This opens-up an opportunity for many to benefit from the tax advantages associated with the Roth IRA.
Conversion may also make sense as a hedge against the distinct possibility of tax increases and higher tax brackets for future retirees.
That said, the Roth IRA also happens to be an enormously efficient vehicle if there is a bequest motive or desire to pass assets to heirs:
"if you want to leave a legacy to your heirs, a Roth IRA trumps all other accounts, says Lange. There are no mandatory-distribution requirements, and your beneficiaries can inherit the account tax-free."
Source: Kiplinger
