Many of our Massachusetts bankruptcy clients are able to protect significant retirement assets in their retirement accounts. As such, we remind our clients of the various options they have before year end. You can get a good chart on what qualifies for retirement deductions in 2010 by clicking here. We work with bankruptcy and post bankruptcy clients to protect their assets legally. The following are a variety of ideas; however, you must talk to a tax professional before undertaking a specific plan of action. Also, be aware that you cannot generally combine these various plans, and, when you can, there are personal, and family, income limits. Roth IRA Conversions: In 2010, if your income is under a certain limit, you can convert all or part of y our IRA into a Roth IRA. Be careful, this is a taxable event and you should seek tax advice before doing so. However, it is a good idea to consider this, especially if your account is down, due to the market, and, and this part is especially important, if you have outside monies to pay the tax. All too often we get clients who converted, or withdrew, IRA monies, and failed to pay the tax. That tax is generally not discharged in bankruptcy.
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