Tax laws are quite favorable this year for converting your IRA into a Roth.  Whether you should is the question.  The conversion requires paying the taxes on the IRA either this year or deferred over 2011 and 2012.  This can be beneficial for some and not so beneficials for others.  The Roth conversions benefits the most when you pay the taxes for the conversion with non-retirement money, you have 20 or more years before you need to begin drawing money out of the Roth and you expect your future tax rates to be higher than they are currently.  The Roth does not have mandatory withdrawal rules, so the money can be left to grow much longer than a traditional IRA.  However, IRAs converted to Roths face a penalty for withdrawal within five years of the conversion.  Paying the taxes for the conversion with non-retirement money allows all of the principal to continue growing.  In some cases this scenario is better than even having lower tax brackets in the future.  To know whether you would be better off with a conversion means  a discussion with your tax preparer and financial advisor.