Offset Your Roth IRA Conversion Costs By Acting CharitablyOffset Your Roth IRA Conversion Costs By Acting Charitably

Sarah C. Libbey

Roth individual retirement accounts offer the enticing benefits of tax-free growth and the ability to make withdrawals during retirement when certain conditions are met.¹ But prior to this year, there was an income restriction on who could convert a traditional IRA to a Roth IRA. Beginning this year, the eligibility requirements for conversion changed: Now, even taxpayers with modified adjusted gross incomes of more than $100,000 can shift assets held in traditional IRAs and other retirement vehicles to Roth IRAs. According to a 2010 Fidelity Investments study (the Fidelity Study),² 40 percent of clients working with tax advisors are now eligible to convert their qualified retirement savings plan to a Roth IRA, up from 13 ...