There have been many stories written recently concerning the various Ponzi investment schemes that have arisen in the news over the past few years. Many are national news like the Bernie Madoff and the Greater Ministries scandals that have caused major losses for many unsuspecting investors. These Ponzi schemes that are national news are not the only ones that are taking place around the country. Recently several have come to light locally right here in Pennsylvania.
Since the investment of choice today seems to be gold, we wanted to share with you some of the tax implications of buying and selling gold, but first, a short introduction to the gold market. Since the dollar was taken off the gold standard in the 1970’s, gold had many bull and bear markets. The lowest price for an ounce of gold was about $ 252.00 in June of 1999. The highest price before the recent surge was $ 850.00 in January of 1980. These extremes in prices tie into investor sentiment of the times, not to the cost or supply of gold being changed at those times.
Many investors probably know that changes in federal tax law for 2010 make converting a traditional IRA to a Roth IRA worth a look. For example, if you convert to a Roth IRA this year, you can choose to spread the reporting of any taxable income associated with the conversion evenly across tax years 2011 and 2012 (an option that's available only this year), or you can report the income with your 2010 tax return.
If you're still unsure about whether to convert to a Roth, here are some lesser-known points that may help you decide.