Obama-ize your Financial Plan (from 11-5-08)

With a new president comes new hope but also financial changes. So, you must prepare to be able to take advantage of these items. If you make over $200,000 a year, there are some issues to look at. Maybe fund a non-deductible IRA so you can convert it in 2010 when they remove the $100k income maximum. Also, you may want to throw more tax deductions to next year if possible.

Roth Conversions!!!!! With the national debt doubling over the last 8 years, taxes will most likely be higher in the future so converting to a tax Free Roth is a great way to go. The problem is you have to make less than $100k a year. Great conversion situations- if you have a large loss due to your business losing money, if your income was low due to a layoff and lastly someone that has more deductions than income to offset the income.

But I make more than $100k. Well, you can fund a Gas Lease program and usually get 85% of what you invest as a current tax deduction. If you make $108,000 and put $10,000 into a gas lease you can now convert you Roth since you income dropped under $100k. If you wait and tax rates go up, the conversion could be much more expensive. See http://www.wealthcreator.com/ for more info.

Related story http://biz.yahoo.com/wallstreet/081105/sb122591367859702209_id.html?.v=2