Roth IRAs Revisited

One reason:

Despite the bundle of tax breaks thatcome with a Roth IRA, including tax-freewithdrawals, many savers have yet totake advantage of them. Thetax bill that goes along with any conversionfrom a traditional IRA is steep.Another reason is the income cap forconversions; if your modified adjustedgross income (MAGI) is more than$100,000, you're not allowed to makethe conversion. Your MAGI is youradjusted gross income (AGI) with manyof the adjustments (ie, usually IRA contributions)that are subtracted from theAGI added back. However, in 2005,mandatory distributions from an IRAwill not count as income toward the$100,000 Roth conversion limit.