• All age groups should consider Roth conversions wisely.woman with parents image by Pavel Losevsky from Fotolia.com
  
  

Convert to Roth

• When you convert to a Roth IRA in 2010, you have the ability to pay the income taxes on the converted amount over two years, 2011 and 2012. The cost of the conversion is reduced if you are able to utilize investment expenses and losses. The Internal Revenue Service allows you to offset up to $3,000 in losses per year and carry the rest to the next year.
  
  

Maintain Traditional IRA

• A Roth IRA is not for everyone. The taxes you pay on the conversion, even after offsetting expenses and losses may be considerable on larger IRA assets. Retirement may drop your tax bracket considerably, possibly even to zero, making it better to continue the traditional IRA for a longer-term benefit.
  
  

Bottom Line

• Each person's financial situation is different and you should consult a tax advisor before making any decisions about converting a Roth IRA. A tax advisor will help you look at the cost now and the anticipated cost in the future to make an informed decision.