Posted on 27 January 2010
By Mark Miller
Roth conversion buzz is heating up this year due to the change in federal law next year that lifts the household income limit for eligibility to convert traditional IRAs to Roth accounts. But Kathy Kristof reports at MoneyWatch.com that some financial services companies are using the Roth conversion opportunity to make unscrupulous pitches for other products.
Why unscrupulous? Kristof reports that insurance agents are marketing Roth conversions as a door-opener to sell high-cost insurance products like deferred annuities. These products are lucrative for the brokers who sell them, but they carry very high fees and usually don’t perform as well as low-cost mutual funds. Via CBS MoneyWatch.com.