Jan. 3 (Bloomberg) — Congress dangled an incentive for high-income Americans to convert their tax-deferred individual retirement accounts into post-tax plans. Their response was overwhelming.
Conversions from regular IRAs to Roth retirement accounts increased more than nine times in 2010, rising to $64.8 billion from $6.8 billion in 2009, according to data released today by the Internal Revenue Service.
That marked the first time Roth conversions were greater than contributions. Conversions were especially common among IRA holders with annual incomes exceeding $1 million. More than 10 percent of them converted to a Roth account, the IRS said.
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