You are eligible to convert to a Roth IRA if your modified AGI for the year that you convert does not exceed $100,000. Individuals who are married filing separate returns are eligible only if they live apart for the full year. For 2010, the IRS has eliminated these requirements and added the option to split the conversion income (and the tax due) over two years with half reported in 2011 and in 2012, unless you elect to report the full amount in 2010. We strongly suggest you consult your tax advisor before you convert an IRA.
IRS Circular 230 Notice: The information contained in this FAQ is provided for information purposes only, is not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations and does not resolve any tax issues in your favor. Refer to IRS Publication 590, Individual Retirement Accounts for additional information on IRAs in general and consult your tax advisor about your individual tax situation.