Replies to post #15333 on Washington Mutual Preferred fka WAMPQ

[rainbow1111]

IRA to Roth conversion - Note to all: you don't have to convert the entire account. You can pick and choose the assets to be converted. I converted my UQs, PQs and KQs to my existing Roth already at minimal tax cost. Fidelity simply transfered the shares to the Roth in one step on the day I completed the online form.

[Rumble]

This is a double bonanza if you wait and convert in 2010. First off, in 2010 there is no income limit (currently 100,000 annual income) to be able to convert your traditional IRA to a Roth IRA. Second, if you convert in 2010 (regardless of your income), you can defer the income until 2011 and 2012 (50/50). I also have an IRA that I am planning to convert after the first of the year, and won't pay the taxes until April 15th 2012 and April 15th 2013!

This is an especially nice gift from the IRS. Also, for those who are concerned about the final outcome, there are provisions that allow you to convert back before the final tax filing deadline for the conversion year (Oct 15th). Keep them seperate from other Roth IRA's you may hold.

If any of you want to chat off line, as an accountant I'm well versed in the laws pertaining to Roth IRA's.

I'm looking forward to a tax free gain from most of my WAMU holdings! And the rest long-term capital gain. The best of both worlds.

Let's rock n' roll in 2010!