Friday, October 29, 2010

Financial Planning: Just Do It

Ed Slott wrote an article for the November edition of Financial Planning titled, "Just Do It", in which he talks about the decision to convert or not convert to a Roth in 2010.

Slott writes: "Many clients are still sitting precariously on the fence, trying to decide whether a 2010 Roth conversion makes sense. As the year winds down, they will be asking their financial advisors if they should take the plunge before Dec. 31. Their major concern? If they do decide to convert to a Roth, where would they get the money to pay the tax? Time could be running out for these uncertain clients, however. Roth conversion tax planning for many individuals will be more expensive and less effective after 2010. As of October, it appears that the top federal income tax rates of 35% and 33% will rise to 39.6% and 36%, respectively in 2011."

CLICK HERE to read the entire article.

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*Copyright 2010 Ed Slott and Company, LLC