Wealthy now have limited-time access to do a Roth IRA on clarkhoward.com

Clark has been long obsessed with the Roth IRA, but not everyone is allowed to do one. Americans who make more than $100,000 individually or $160,000 as a family typically are ineligible.

However, there are two unique loopholes at this time that let wealthy Americans take advantage of this tax-free retirement savings option.

First, you can put $5,000 in a non-deductible IRA this year, and next year you can convert it -- regardless of income -- into a Roth IRA. You'll only pay tax on whatever gains you make for the remainder of 2009.

Second, next year you'll also be able to convert a regular IRA into a Roth. That means you must be prepared to pay any tax you will owe for converting over the course of 2011 and 2012.

Again, both of these options are only for those who make too much money to traditionally do a Roth.

Still not convinced about the benefits of a Roth account? Clark encourages you to visit RothRetirement.com and use their calculators. There you can see how much further your money goes in a Roth than in a regular IRA.

Need help picking investments for your Roth? See Clark's investing guide.

What others are saying

Non Deductible IRA
1. I believe anyone regardless of income can do this which opposite of what is posted above.
2. When you convert do you have to sell your stock or can you keep it and pay the gains due on the conversion date?
3. Can you contribute your 5k in 2010 and then convert later that same year?

Thanks
By Mark @ 08/04/09 12:28:34 PMreport abuse
This is less advantageous than it looks
The problem for most wealthy people is that they already have IRAs, so when you do a conversion next year you will only get to take this year's contribution as basis in calculating tax on the conversion if you convert ALL of your IRAs, which could push you into a very high tax bracket on the conversion. If you only convert part of your IRA then you must apportion your basis between the amount converted and the amount that remains in the IRA. This does work if you don't currently have an IRA or one with a very small value.
By Brad Rouse @ 08/03/09 04:26:58 PMreport abuse
Socialists
Obama in 2012?

NOT!
By Layne @ 08/02/09 03:36:55 PMreport abuse
Take A Joke
Brian---I think they are making a joke at the expense of the socialist president.
By Adam @ 08/01/09 01:04:02 PMreport abuse
you guys are idiots!!
Maybe you 2 should take some risk and try your own business if its so great and business owners make all the money! Work harder at trying to make money do not punish those who make more money!!
By brian @ 08/01/09 11:45:29 AMreport abuse
It's not fair
My employer makes alot more than I do. This is not fair. We should tax all business owners and raise the minimum wage to $25/ hour to even things out. I knew that public schools would learn me something about muney!
By Stan @ 07/31/09 04:06:37 PMreport abuse
Close the loopholes
We need the gov't to close these loopholes immediately. After all $160,000 is incredibly wealthy! Hell, lets just take all the money from anyone making more than me! That's why I elected politicians in the first place.
By drew @ 07/31/09 07:43:35 AMreport abuse

Non Deductible IRA

1. I believe anyone regardless of income can do this which opposite of what is posted above.
2. When you convert do you have to sell your stock or can you keep it and pay the gains due on the conversion date?
3. Can you contribute your 5k in 2010 and then convert later that same year?

Thanks

By Mark @ 08/04/09 12:28:34 PMreport abuse

This is less advantageous than it looks

The problem for most wealthy people is that they already have IRAs, so when you do a conversion next year you will only get to take this year's contribution as basis in calculating tax on the conversion if you convert ALL of your IRAs, which could push you into a very high tax bracket on the conversion. If you only convert part of your IRA then you must apportion your basis between the amount converted and the amount that remains in the IRA. This does work if you don't currently have an IRA or one with a very small value.

By Brad Rouse @ 08/03/09 04:26:58 PMreport abuse

Socialists

Obama in 2012?

NOT!

By Layne @ 08/02/09 03:36:55 PMreport abuse

Take A Joke

Brian---I think they are making a joke at the expense of the socialist president.

By Adam @ 08/01/09 01:04:02 PMreport abuse

you guys are idiots!!

Maybe you 2 should take some risk and try your own business if its so great and business owners make all the money! Work harder at trying to make money do not punish those who make more money!!

By brian @ 08/01/09 11:45:29 AMreport abuse

It's not fair

My employer makes alot more than I do. This is not fair. We should tax all business owners and raise the minimum wage to $25/ hour to even things out. I knew that public schools would learn me something about muney!

By Stan @ 07/31/09 04:06:37 PMreport abuse

Close the loopholes

We need the gov't to close these loopholes immediately. After all $160,000 is incredibly wealthy! Hell, lets just take all the money from anyone making more than me! That's why I elected politicians in the first place.

By drew @ 07/31/09 07:43:35 AMreport abuse

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Jul 30, 2009 -- Wealthy now have limited-time access to do a Roth IRA

What others are saying