State Senator Mary Lazich (R-New Berlin) represents parts of four counties: Milwaukee, Waukesha, Racine, and Walworth. Her Senate District 28 includes New Berlin, Franklin, Greendale, Hales Corners, Muskego, Waterford, Big Bend, the town of Vernon and parts of Greenfield, East Troy, and Mukwonago. Senator Lazich has been in the Legislature for more than a decade. She considers herself a tireless crusader for lower taxes, reduced spending and smaller government.
A possibly lucrative retirement account conversion went into effect January 1, 2010. Under a new federal rule, people earning more than $100,000 may convert their assets from a traditional IRA to a Roth IRA. Previously, only people earning less than $100,000 could make the switch without penalties.
The beauty of the conversion is that Roth withdrawals are tax-free.
However, there is a big problem.
How did that happen?
The all-important decision by the Legislature to adopt changes so conversions to Roth IRA’s could take place penalty-free should have and could have been made during last year’s 2009-11 state budget process. However, Democrats that control the Legislature’s Joint Finance Committee balked.
What does that mean for holders of traditional IRA accounts that want to convert to Roth IRA’s?
The Journal Sentinel also wrote about a November 12, 2009, report by the Legislative Fiscal Bureau’s Rick Olin:
State coffers aren’t the big losers. That distinction belongs to innocent
Another effect of the Legislature’s failure to adopt the new tax rule changes is that financial experts spend extra time and money in their tax preparations. The tax laws are complex enough without accountants in
The state Legislature needs to adopt the necessary changes quickly so that