April 28, 2006 – Lawmakers this week have been negotiating differences between House and Senate versions of tax reconciliation legislation (H.R. 4297), which contains a provision that would temporarily remove the annual income cap for eligibility to convert Traditional IRAs to Roth IRAs. At present, taxpayers whose annual income exceeds $100,000 may not convert Traditional IRA assets to Roth IRAs.
Lawmakers have reportedly encountered several roadblocks in their negotiation, and it appears a conference committee agreement may not be reached in time for the House and Senate to consider this legislation next week. Both House and Senate must pass an identical bill before it can be signed into law by President Bush.