Not too long ago, it seemed like 2010 was light years away. Yet, here we are only two months away from the ball dropping again. Next year will bring with it a unique opportunity for those wanting to convert their traditional IRA to a Roth IRA. In 2010, the $100,000 income restriction for conversion eligibility is waived, but that is just the beginning of the changes for Roth IRAs in 2010. Below, we have ten reasons you should consider converting your traditional IRA to a Roth. Be sure to consult a tax advisor or investment professional to consider all the factors before deciding whether a Roth IRA conversion is right for you.

1. Taxpayer wants to take advantage of special favorable tax attributes.
2. Elimination of the minimum distribution rules at age 70 ½ provides a considerable advantage to the Roth IRA holder.
3. Taxpayers in states with an income/estate tax benefit from paying income tax before estate tax, when a Roth IRA election is made, compared to the income tax deduction obtained when a traditional IRA is subject to estate tax.
4. Taxpayers making the Roth IRA election during their lifetime reduce their overall estate, thereby lowering the affect of higher estate tax rates.
5. Taxpayers who can pay the income tax on the IRA from non-IRA funds benefit greatly from the Roth IRA because of the ability to enjoy greater tax free yields.
6. Taxpayers who pay the income tax on the IRA from non-IRA funds can move money from at-risk assets to tax-free protected assets.
7. Taxpayers who need to use IRA assets to fund their Credit Shelter Trust for spouse or Lifetime Protective Trusts for children are well advised to consider making a ROTH IRA conversion for that portion of their overall IRA funds.
8. Because federal tax brackets are more favorable for married couples filing joint returns than for single individuals, Roth IRA distributions by surviving spouse won’t cause an increase in tax rates for the surviving spouse when one spouse is deceased because the distributions are tax free.
9. When tax bracket of IRA owner is more favorable than tax bracket for intended beneficiaries.
10. Taxpayer has high basis in traditional IRA because of non-deductible IRA contribution.

Be sure to consult a tax advisor or investment professional that can help you consider all the factors before deciding whether a Roth IRA conversion is right for you.