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Senate Expands Roth IRAs to Fund IRS Reform

On May 6, by a vote of 56 to 42, the Senate adopted an amendment by Rep. William Roth (R.-Del.) that will allow many people over 70 and a-half with incomes exceeding $100,000 to convert their traditional Individual Retirement Accounts (IRAs) to Roth IRAs, which provide for tax-free withdrawals of contributions and investment earnings upon retirement.

Only taxpayers with adjusted gross incomes under $100,000 are able to have Roth IRAs or, prior to passage of the Roth amendment, roll over funds from their traditional IRAs into Roth IRAs. Since people over 701/2 have to withdraw a minimum amount from their standard IRA annually, the mandatory minimum withdrawal was often enough to put them ...

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