If you’ve been around the blog, I’m sure you’ve noticed that I’ve written much on the Roth IRA 2010 conversion event. It’s been getting a ton of buzz as many are eager to enjoy the tax free benefits of the Roth IRA. As with anything, just because your neighbor is doing it, doesn’t mean you should. We took a closer look of the some of the unforeseeable consequences of the Roth conversion and uncovered some potential pitfalls that you may have if you convert without knowing all the facts. Another important issue for parents who have children going to college soon is the impact that a Roth conversion can have your kid qualifying for financial aid. Tax free is nice for down the road, but converting too much could leave you with a hefty tuition bill.
