I couldn’t be happier with the quality of their work, their professionalism, level of communication, and how pro- active they are when it comes to understanding my needs and adding additional insight.

They have always exceeded my expectations in the work that they have performed.

CRAIG MANCHEN, Novelty Investments

Retirement

Traditional and Roth IRAs

You may contribute up to $5,000 to fund a traditional or Roth Individual Retirement Account (IRA) in 2010. Individuals age 50 or older by the end of 2010 can make an additional catch-up contribution of $1,000.

Eligibility to contribute to a Roth IRA is phased out for modified AGI between $105,000 and $120,000 if single, head of household or married filing separately and not living with spouse at any time in 2010; and $167,000 to $177,000 if married filing jointly or qualifying widow(er).

If modified AGI is less than the phaseout thresholds of $105,000 and 3167,000, contributions can be made up to the contribution maximum, and if modified AGI is greater than the phaseout thresholds of $120,000 and $177,000, no contribution can be made.

Married taxpayers who file separately and lived with a spouse at any time in 2010 cannot contribute to a Roth IRA if their modified AGI is $10,000 or more,

Conversion of Traditional IRA to roth IRA

You can convert a traditional IRA to a Roth IRA, with no dollar limit on the amount converted. Although income tax Is due on the amount converted, the 10% early-distribution penalty does not apply if you are younger than age 591/2 and keep the funds in the Roth IRA for at least five years. Also, if you do not report all conversion income in 2010, 50% of income from 2010 is automatically deferred to 2011 and the remaining 50% to 2012. A conversion can he reversed no later than the extended due date for your 2011 tax return.

Rollover to In-plan Roth IRA

After Sept 27, 2010, a 401(k), 403(b) or 457(6) plan that includes a qualified Roth contribution program may now permit a qualified rollover contribution from a participant's non-Roth account to the participant's designated Roth account within the same plan. The converted amount is included in income, but special rules apply to rollovers in 2010 - the amount that would be included in 2010 may be included in equal installments in
2011 and 2012.

A further exception allows you to unwind a conversion prior to filing the 2010 return with extensions.

Employer-Sponsored 401(k)

Pre-tax contributions to your employer-sponsored retirement plan reduce your taxable wages. Matching contributions and income earned within your plan also are tax-deferred. Your contribution limit for 2010 is $16,500. If you are age 50 or older by the end of 2010 you may make an additional catch-up contribution of $5,500 to reach $22,000 for 2010. Also, there is no minimum distribution required in 2010 from your 401(k).

Retirement Savings Contributions (Saver's) Credit

Qualified taxpayers who make contributions to a retirement plan, including traditional IRAs or Roth IRAs, by April 15, 2011, are eligible for the Saver's Credit. The 10%, 20% or 50% credit is based on adjusted gross income and applies to the first $2,000 of contributions, bringing the top credit to $1,000. To claim the nonrefundable credit, adjusted gross income must be less than $55,500 if married filing jointly, $41,625 if head of household or $27,750 if single, married filing separately or a qualifying widow(er).