Congress has cut a deal on a new tax bill that is almost certainly going to be signed into law. It’s mostly just a Band Aid on the current tax code, but it affects people who may be eaten up by the Alternative Minimum Tax. The AMT was developed in the Viet Nam War to target rich people, but it hasn’t morphed with inflation. So, what was a rich back then is now a decent living, and people are getting caught up in this tax. The new legislation gives people a break on that tax until about 2010. In addition, the law will allow people to convert money from a regular IRA into a Roth account. Many taxpayers can’t do that right now because of all the income rules and limits. Converting now will save you money on tax rates. Plus all the money you’ll earn from now until you retire will grow tax free. So, as soon as the law is on the books, Clark will tell you how to proceed.