What significant change occurred regarding conversions to a Roth IRA after December 31, 2009?

The significant change that occurred regarding conversions to a Roth IRA after December 31, 2009, is the elimination of the gross income limit. Prior to this change, individuals with adjusted gross incomes above a certain threshold were not allowed to convert traditional IRAs to Roth IRAs. This limitation restricted the ability of higher-income earners to take advantage of the tax-free growth and tax-free withdrawals associated with Roth IRAs.

With the removal of the gross income limit, any taxpayer, regardless of income level, can convert their traditional IRA to a Roth IRA. This change provides greater flexibility for retirement planning, allowing a wider range of individuals to utilize the benefits of a Roth IRA. As a result, those who were previously ineligible due to income constraints can now choose to convert, taking advantage of potential tax benefits in the future.