Read this WSJ article regarding a special IRA conversion provision offered by the IRS that is set to expire on 12/31. There is much to read about this subject and even some debate on the merits of this type of conversion. Consult with your tax adviser if you are considering converting your traditional IRA to a Roth-IRA.
To make that more palatable, Uncle Sam is offering a special deal that expires on Dec. 31. Those who convert in 2010 can choose to report the income on their 2010 tax returns or they can spread the income equally across their 2011 and 2012 returns.
Another great resource on IRAs can be found at Ed Slott’s website, www.irahelp.com .