You as a taxpayer have a unique opportunity this year to do long-term retirement planning under very
favorable conditions. For 2010 only, it is possible to roll over funds from a traditional IRA into a Roth IRA without
penalty and to postpone taxation of the rollover until 2011 and 2012. Also, for the first time, there is no income
limitation for IRA to Roth rollovers. Prior to 2010, only those persons with adjusted gross income of $100,000 or
less could convert to a Roth.

Roth IRAs are different from traditional IRAs because they are more liquid—you can pull money more
easily out of a Roth before retirement age without penalty, after you have had the Roth for more than 5 years. Also,
earnings on a Roth may never be taxed at all if you do not withdraw the earnings portion until after age 59 ½. With
Roths, you have no minimum distribution rules, so you do not have to withdraw funds at age 70 ½ if you do not
want to.

Another major difference is that Roth IRAs are funded with after-tax money. You get no deduction for
contributions to a Roth. So when you convert a traditional IRA, which has never been taxed, into a Roth IRA, you
must pay the income tax on the portion of the account that was funded with pre-tax dollars.

Read more: OPPORTUNITY FOR 2010 TAX PLANNING WITH ROTH IRA

ALTERNATIVE MINIMUM TAX RELIEF

For tax years beginning in 2009, individuals will receive some relief from the alternative minimum tax (AMT) through an increase in the exemption amounts to $46,700 for unmarried individuals, $70,950 for married couples filing a joint return and surviving spouses, and $35,475 for married persons filing separate returns. Also, nonrefundable credits are allowed against the minimum tax. Finally, tax-exempt interest on private activity bonds will not be included in the minimum tax calculation.

Read more: Alternative Minimum Tax Relief, Business Tax Breaks, Alternative Energy Tax Breaks