What legislation will allow anyone to roll over a Trad IRA into a Roth IRA without penalty in 2010?

Question

Suze Orman wrote an article Nov 20, 2006 for Money Matters and it is posted on Yahoo Finance titled An IRA Nest Egg you Cant Pass up. Can you please refer me to this legislation because my broker doesnt seem to know anything about it and I cant find it. Thank you.

Answer 1

Conversions from Traditional IRAs to Roth IRAs have never been "penalized". This issue has been that if you make over $100,000 per year, you can not do it. In 2010 the income limit goes away so anyone can do it. The conversion is still taxable but you can spread the tax bite over 2 years (2010 and 2011).

Of course....I can not find a link right now....