Roth IRA Conversion
It is possible to convert part or all of your Traditional IRA holdings into a Roth IRA. When you convert your Traditional IRA, you will have to pay taxes on any deductible contributions that were made to the account, as well as on any earnings in the account. Conversions are not subject to the 10% penalty on distributions taken prior to age 59½. This conversion feature may make sense for you but is not available if your modified Adjusted Gross Income exceeds $100,000 for the year. If you are married and file a separate return for the year, you and your spouse must live apart for the entire year to qualify for a Roth IRA conversion.
