Dennis A. Suckstorf authors article for NAPFA's Planning Perspectives E-Newsletter. Planning perspectives is the consumer e-newsletter of the the National Association of Personal Financial Planners. Prior to 2010, an individual could only convert a traditional IRA (qualified retirement plan) to a Roth IRA if his or her modified adjusted gross was below $100,000. But since January 2010, the income restriction has been lifted, and many newly eligible people are considering this tactic.

You have heard about the Roth conversion law for 2010. It’s in the news and everyone is talking about it. Beginning in January 2010, anyone can convert a traditional IRA (qualified retirement plan) to a Roth IRA without any income limitations.

Over the past 12-18 months, there has been a significant downturn in the financial markets. IRA accounts and other investment accounts do not have the same value they did at the end of 2007. With the devaluation of these accounts, especially IRA accounts, many people are wondering, “Should we convert part or all of our traditional IRA to a Roth IRA?”

Facing a recession and a down stock market, many people are stopping or cutting back their contributions to retirement plans like 401(k)s, IRAs and SEP IRAs.