More than half of current IRA owners and more than three-quarters of all respondents are unsure about the new Roth IRA conversion rule changes, according to a recent consumer survey conducted by LIMRA.
The new conversion rule became effective Jan. 1, 2010, eliminating the $100,000 income threshold that previously existed. Under the new rule, taxpayers can convert their traditional IRAs and other eligible qualified retirement plans to a tax-free Roth, while the income taxes due can now be paid over two years.
However, the survey found that 54 percent of current IRA owners didn't know about the changes.
Overall, four out of 10 respondents said they owned an IRA, while of the 46 percent of these respondents who were aware of the changes, most were more likely to have incomes greater than 75,000 or were 65 or older.