In this issue: New health care reform includes current and future tax changes HIRE Act of 2010: Tax breaks for businesses Taxes & summer jobs The question of the year: Should you convert your regular IRA to a Roth? Two prior IRA rules are still in effect for 2010 Working after retirement can change your benefits and your tax bill Mark Your Calendar Tax Talk

Two prior IRA rules are still in effect for 2010

Rule #1. Note that while converting a traditional IRA to a Roth IRA is now open to everyone, regardless of income, contributing to a Roth IRA is still not allowed for higher-income taxpayers. For 2010, Roth IRA eligibility phases out for singles once income reaches $105,000 and for joint filers once income reaches $167,000.

Rule #2. For 2010, annual minimum distributions from most retirement plans (except for Roth IRAs) are once again required for those aged 70½ and older. In 2009, these required minimum distributions (RMDs) were suspended. 2010 required distributions must be taken by December 31, 2010. Taxpayers who turn 70½ in 2010 may choose to delay taking their first distribution until April 1, 2011.

For additional information or assistance with your IRA decisions, give us a call.

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