Most Boomers don't plan to convert in 2010
By Gary Linnell
ProWEB Wire (Industry News)
A new survey by financial services company USAA indicates changes have occurred in investor awareness of the Roth IRA provisions available this year.
The research found that of the baby boomers surveyed who own an IRA and can now convert to a Roth IRA due to income limits lifting, 58 percent are aware of the changes, up from just 39 percent who were aware in 2009. Meanwhile, 70 percent do not plan to make a conversion in 2010, while 17 percent are unsure. Last year, 67 percent did not plan to make a conversion while 24 percent were unsure.
In addition, 72 percent of all respondents who own an IRA are not planning to convert some or all of their Traditional IRA to a Roth IRA this year.
When asked why they wouldn't convert, 44 percent said they believe their income tax rates will be lower in retirement and they don't want to pay higher taxes by converting funds now; 35 percent received a recommendation from a tax advisor or financial planner to not convert; and 27 percent are not able to pay taxes that would be due on the converted funds.