New Rule Eases The Shift To Roth IRA; Helps Estate Planning; Change makes it easier for older account owners to qualify for a conversion.(FUNDS & PERSONAL FINANCE)

Publication: Investor's Business Daily

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COPYRIGHT 2005 Investor's Business Daily, Inc.

Byline: PAUL KATZEFF

A recent tax-rule change makes it much easier to convert a traditional IRA to a Roth IRA.

That will help people build bigger retirement accounts. And it will make it easier to pass Roth IRAs to spouses and other loved ones.

The quickest benefit goes to people at or near retirement age.

That's because the new rule says certain mandatory withdrawals from a traditional IRA no longer get counted in the income that determines if a person is eligible for a Roth IRA conversion.

Those withdrawals start when people are past age 70 1/2.

Here's what happens. You generally must start to take payouts from a regular individual...

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