Current Ira Conversion

If you wish to convert your traditional IRA to a Roth IRA, there are a couple of restrictions and regulations that you will have to follow. These rules limit which people will be able to convert their accounts to a Roth IRA.
One of the main restrictions is that you are not allowed to convert a traditional IRA to a Roth IRA if your adjusted gross income is more than $100,000. For couples married and filing jointly, the limit is increased up to $160,000. Starting in 2010, this restriction will be lifted by the Internal Revenue Service.
Since 2008, you are also allowed to convert your old 401(k)'s into a Roth IRA, providing you with a great tax benefit. Before this, you would have to convert your 401(k)'s into a Traditional IRA then convert that into a Roth IRA. Changes in policy such as this one makes it much easier for you to convert other forms of retirement accounts into a Roth IRA.
There are a couple of other limitations on converting another type of IRA to a Roth IRA. For example, if you have acquired an IRA from somebody else other than your spouse, you cannot convert that IRA into a Roth IRA. Individuals that are married but filed separately are also not eligible or qualified for converting their IRA's into a Roth IRA.
Most of these restrictions have been lifted due to the Tax Increase Prevention and Reconciliation Act of 2005. The law allows people whose adjusted gross income is over $100,000 to convert their IRA's to a Roth IRA starting January 1st, 2010. This is a big change in policy, as before, people who made over $100,000 a year were not eligible for the conversion.
Taxes for the Roth IRA conversion can now also be spread over the course of two years, 2011 and 2012. Previously, taxes for the conversion would have to be paid the same year. This is a great opportunity for people who want to cash in on the tax-free benefits of a Roth IRA in the future when compared to other IRA types. The conversion to Roth IRA in 2010 should be taken advantage of, as it removes some of the restrictions preventing individuals from converting an IRA to a Roth IRA.