With 2010 right around the corner, many of our forward-thinking Self Directed IRA investors have been asking us about Roth IRA conversions.  There seems to be something about Tax Free Investing that has captured their attention.

2010 marks the implementation of changes to the Roth IRA rules included in the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA).  These changes open up the door to Roth IRA conversions for investors who have been locked out of this tax free investment opportunity in the past.

Unlike Traditional IRAs, provisions for Roth IRAs include tax-free growth, tax-free distributions, and no required minimum distributions (RMD’s) for the owner of the retirement plan.

But, many investors have not been able to reap these rewards due to limits on income for contributing to a Roth IRA or converting Traditional IRA funds to Roth status.  In the past, if your adjusted gross income (AGI) exceeded $100,000 (single or married), you could not convert Traditional IRA funds to Roth treatment.

Beginning January 1, 2010, the existing AGI limitation on Roth conversions will no longer apply. Investors who convert in 2010 can spread the taxes over two years, 2011 and 2012, thereby receiving what amounts to an interest free loan from the IRS, to be repaid over a two-year period. Think of it as your own personal stimulus package.

Everyone’s situation is different, so don’t assume the Roth IRA or 2010 conversion opportunity is tailor-made for you. Sit down with your CPA, or with a good tax planner, and take a hard look at whether this might be the right move.

If you find you want to perform a Roth IRA conversion, be sure to check with us regarding how that Roth conversion will fit in with your self directed IRA investing goals.  Some self directed investment structures are more suited to Roth conversion than others.

While lack of planning could prevent you from being able to make a Roth IRA conversion, we have strategies that can help you maximize your ability to participate in a self directed Roth IRA with converted funds.

The bottom line is this… proper planning with good advice can multiply your potential for tax free retirement wealth building.  At Safeguard Financial, we have the knowledge and experience to assist you in evaluating your options and successfully integrating your Roth IRA and Self Directed IRA, Checkbook IRA or Real Estate IRA investment strategies.

Contact us today to learn more about how you can take advantage of a self directed Roth IRA.

Safeguard Financial
www.IRA123.com
877-229-9763