TIPRA (see earlier posts) includes an increase in the “kiddie tax” to children age 14 to 18. This makes the use of UTMA accounts and certain trusts less favorable. However, it also makes use of 529 plans more favorable as they are not affected.

The elimination of the cap on Roth Conversions after 2009 makes contributing to non-deductible IRAs now more favorable. This way, you can build up an IRA that you later convert with minimal tax cost to a Roth IRA from which all distributions are tax free. The tax on conversion in 2010 can be paid over 2 years, where the best strategy is to pay that tax from assets outside the plan.