OCT 2010 CMCD

WHAT’S NEW FOR 2010?

For 2010, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is:
• More than $89,000 but less than $109,000 for a married couple filing a joint return or a qualifying widow(er),
• More than $56,000 but less than $66,000 for a single individual or head of household, or
• Less than $10,000 for a married individual filing a separate return.

For 2010, your Roth IRA contribution limit is reduced (phased out) if your modified AGI is:
• More than $167,000 but less than $177,000 for a married couple filing a joint return or a qualifying widow(er),
• More than $105,000 but less than $120,000 for a single individual or head of household
• Less than $10,000 for a married individual filing a separate return.

CONVERSION FROM TRADITIONAL TO ROTH IRA
从传统IRA转到ROTH IRA

Beginning in 2010, the modified AGI and filing status requirements for converting a traditional IRA to a Roth IRA are eliminated.
Also, for any 2010 rollover from an IRA other than a Roth IRA to a Roth IRA, any amounts that would be included as income will be included in income in equal amounts in 2011 and 2012. You can choose to include the entire amount in income in 2010

WHAT’RE TRADITIONAL IRA AND ROTH IRA?
传统IRA和ROTH IRA 之区别
Traditional IRA
• Tax deductible contribution (but it depends on income level)
• Withdraws begin at age 59 1/2 and are mandatory by 70 ½
• Earnings and gains, are not taxed until they are distributed
• Withdrawals are subject to 10% penalty if made before age 59 ½ ROTH IRA
• Contribution is NOT tax deductible
• No mandatory distribution age
• If you satisfy the requirements, qualified distributions are tax-free

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