I have an IRA in the 6 figures range. In 2010 anyone regardless of AGI will be allowed to convert IRA accounts to Roth IRA accounts. The advantage of this is that all future gains will be tax free.

The rules regarding what IRA investments can be in are rather loose so you are not restricted to just stocks, bonds and the usual stuff.

Under this conversion, I’ll need to pay tax on the value of my account that has not previously been taxed.

I am thinking that there might be a way (loophole) to have my IRA invested in something that has an artificially low value at the time of conversion (2010) but has a high value in 2011 or other time in the future. What ideas do you have of such a scenario?

Survey Finds Many Investors Ambivalent to New Roth IRA Conversion Opportunity OMAHA, Neb.—-There is no mad dash to convert to a Roth IRA when the rules change in January, making those with income over $100,000 newly eligible for such a conversion, according to a panel of over 1,000 TD AMERITRADE Holding Corporation’s retail investor clients. Read more on Business Wire via Yahoo! Finance

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