On February 25, 2010, the Wisconsin Assembly passed a bill to bring the state's treatment of Roth IRA conversions in line with the federal regulations. The bill has already passed the Senate and now awaits the
Governor's signature. If signed, the bill would allow anyone in Wisconsin to convert traditional IRAs to Roth IRAs.
A federal law passed last year allowed anyone, regardless of income, to convert their IRA to a Roth IRA beginning in 2010. Though federal law allowed anyone to convert to a Roth IRA, Wisconsin state law kept in
place regulations that limited conversions to people with adjusted gross income (AGI) less than $100,000. Wisconsin had been the only state that had not adopted the federal regulations that eliminated the income
limit for converting a traditional IRA to a Roth IRA. Had the bill not passed, Wisconsin residents who converted to Roth IRAs could have faced substantial penalties.
