The income cap that prohibited a person earning more than $101,000 from converting a traditional IRA to a Roth IRA is now removed. Unless a taxpayer elects otherwise, none of the taxable income resulting from the conversion will be included in taxable income in 2010. One-half of the income resulting from the conversion is includible in gross income in 2011 and the other half in 2012. Thereafter, there will be no taxation on future income if the five year holding period for a Roth IRA is satisfied. Also, there will be no requirement that distributions begin at age 70 1/2.

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