It is possible that no one has mentioned this Roth IRA conversion opportunity to you before. This is because prior to January 1, 2010, if your household income exceeded $100,000, you were not allowed to do it. Thanks to the Tax Increase Prevention and Reconciliation Act of 2005, now you can.

Regardless of your income level, you can now do a Roth IRA conversion at any time. But, thanks to this same Act, there is an extra reason you might want to do a conversion in 2010. That is because the amount converted in 2010 can optionally be reported as taxable income over two years - half on your 2011 income tax return and half on your 2012 income tax return. So, the taxes can be delayed a bit and spread out over 2 years, but only for conversions that are made in 2010.

So, how do we grow our retirement savings while not growing the deferred tax burden? The answer: by doing a Roth IRA conversion today.

A Roth IRA conversion generally entails paying taxes on the accumulated IRA balance now, and thereby stopping the tax burden from continuing to grow, because once the money is in a Roth IRA, you create the opportunity to owe no taxes on any future growth in the IRA balance.

In contrast to traditional IRAs, whose withdrawals are generally fully taxable, Roth IRAs can provide a cash flow in retirement that is 100% free of income taxes. Future interest and investment gains are not taxed at all as long as the rules are followed. In general, the rules are no withdrawals prior to age 59½, and no withdrawals until
the Roth IRA account has been established for at least five years.

You may have saved money for retirement in a traditional IRA. You may have saved money in an employer sponsored plan such as a 401(k), 403(b), or 457 plan, some other retirement account that defers taxes, or a combination of these.

Over time, you want and expect your retirement savings to grow.

But as your savings in these types of plans grows, so does the tax burden associated with it. That’s because taxes on that money are deferred, not eliminated.

Who pays these taxes? You will, when you take withdrawals, and your heirs will, when they receive the balance that remains at your death. As your balance grows, so do the deferred taxes.

What most people really want is their savings to grow, but the associated tax burden to not grow.

If you have a large balance in an IRA, 401(k), or 403(b) account, and if your household income is at least $100,000, you need to know about the opportunities created by the Tax Increase Prevention and Reconciliation Act of 2005. Important new provisions apply for the 2010 tax year.

Take advantage of this opportunity to protect yourself from future tax rate increases and create tax-free income in retirement.

CALL TODAY to learn more and confirm your eligibility for these important tax benefits.

No time in history is financial planning for retirement as critical as right now. Let's recap what the Americans are facing today:

1. Social Security Benefits. Starting from 2009, the millions of baby boomers each year have been reaching retirement age and become eligible for Social Security benefit. In 1945, for each social security benefit recipient there were 16 workers paying into the fund; currently, for each recipient, there are 3.25 workers paying the social security tax; in year 2040, for each recipient, there will be only 2 workers paying into the fund. Ever read the back of your social security annual statement? It says in less than 10 years, the social security will be paying out more benefit than the taxes collected; and if things remain the same, in 2040 the social security trust fund will be exhausted.

2. Pension uncertainty. Elizabeth Warren, Law Professor at Harvard University, pointed out "“There’s no business in America that isn’t going to figure out a way to get rid of these benefit promises.” In the private sector, over 1000 employers shut down their defined benefit pension plans every year, not to mention the companies that declare chapter 11 bankruptcy. Let's also look at the situation of the public workers - 90% of them are covered by defined benefit pensions, yet 14 million public workers and 6 million public retirees are owed $2.37 trillion by more than 200 states, city and government agencies. Many state and government pensions only have fractions of the fund to cover the promised obligations.

3. Longevity risk. In 1935 life expectancy was 62.9 years; American's life expectancy has been on the rise for decades and in 2009 it increased to 77.9 years. People live longer years in retirement, needing more money and resources.

4. Loss of retirement savings. Average people lost 50 to 70% of their retirement savings in the stock market crash of 2000. Many people's retirement savings suffered another loss of 30 to 50% in 2008 and 2009. With nest egg reduced dramatically, many could not afford to retire; those that are fortunate enough to afford retirement want to rethink about how to guarantee their life style with what they have left.

5. The tightening of the economy. America has been in the worse economic depression since 1930s. It did not come to an end until the Second World War. No one is certain how long this depression will last. People have changed; companies have changed' the country has changed. We are now operating on rules that are quite different from what they used to be.

6. Tax rates are expected to go higher. The George W. Bush-era tax cuts expire at the end of 2010, and the current outlook is that high-income Americans will take the brunt of the pain as income-tax and capital-gains rates revert to higher levels.

Can you afford not be think about your money? Can you risk your retirement security by not planning while you still can?

A poll done by Harvard Business School in 2007 shows 69% of people worry about outliving their financial resources and 80% of people are concerned about having adequate income during retirement. Are more or less people worrying or concerned now than three years ago? Are you closer to retirement age or further? Has your retirement savings increased or decreased now?

Financial planning is no longer a luxury that only the wealthy people need. Planning for a secure retirement and guaranteed stream of retirement income is a "must" for anyone who has at least some sense of responsibility toward oneself.

I specialize for many years now in retirement planning and retirement income planning. I can help you restore your confidence in a secure retirement. I can help you to have peace of mind. I can enable you to sleep at night. Together let's make your 2010 a very happy, prosperous and joyous year!