PERSONAL NEWS 2/23/2010 – You may not be aware that there have been significant changes in the rules for conversions from a traditional IRA to a Roth IRA that took effect January 1, 2010. Many of these new rules will be in effect for the calendar year 2010 only and will expire 1/1/2011. One of the most important rule changes is that the $100,000 limit on AGI has been lifted.  That means no one is limited from making conversions to a Roth IRA simply because they make too much money.   The other most significant part of the rules changes comes in the way you can pay your tax bill on the conversion.  In previous years, if you did a conversion in a particular year, 100% of the tax liability needed to be paid upon filing your taxes for that year. In 2010, if you do a conversion this year, you can defer 50% of your tax liability to your 2011 taxes and, further defer the remaining 50% until your 2012 taxes. It is like the government is giving you a zero interest loan that carries until April 15, 2013 (the last day to file your 2012 taxes)! There are many other provisions in the 2010 rules you need to be aware of in order to determine if a Roth conversion is right for you. Keep in mind, even though the tax free growth of a Roth IRA may be very tempting on its face, as with all things, it comes down to properly analyzing the details for your personal situation.  Give us a call and let us help. BUSINESS NEWS 2/22/2010 – Many employers currently provide some form of a pension plan for their employees, whether it be a 401k, 403b or some other profit sharing plan. As the employer, you have made this benefit available to help your employees save for retirement and may even contribute on some matching fund basis. Unfortunately, your benevolence may come back to haunt you.  In a landmark case settled in 2008, the court has ruled employers can now be held liable for virtually any and all ERISA violations, even those perpetrated by your TPA! Even arbitrary items such as dissatisfaction with asset performance or too cozy a relationship with your broker are causes for this new round of class action lawsuits. Who is at risk?  Everyone.  From major retailers like Wal-Mart to plans with under $20million in assets, all are being targeted and reviewed. Disgruntled employees come in many forms.  Your most at risk employees are those that have likely served you the longest.  They are, those approaching retirement.  Retirees want to retire on time, not work longer because their 401k lost too much money. There are several areas you must improve upon in order to help mitigate your potential losses.  Most are low or no cost to you and can be implemented in house. The cost of not implementing them could be devastating. To request your complimentary presentation outlining what your risks and solutions are, please click here and reference “Pension Problems Presentation” in your message.