Believe it or not, we have found one bright light in the government's overspending.

Here is how you can beat the Feds at their own game in 2010...

Because the federal government refuses to put down its credit card until the economy starts functioning on ALL cylinders, Washington is looking for every tax dollar it can find before it starts raising our tax rates.

This need to fund unconscionable spending has opened up, not just a window, but a door of opportunity for all of us who have money stashed in our traditional IRA accounts.

Here's the deal: Beginning January 1, 2010, the income threshold which allows individuals to convert from a tax-deferred IRA to a tax-free Roth IRA, that has stood at adjusted gross incomes of less than $100,000, will be eliminated. This will allow anyone who chooses to convert, no matter what his or her income, to do so next year.

Opting to make this conversion during 2010 allows the government to gather more tax dollars sooner something desperately needed to stoke its spending madness. But it could very definitely benefit you as well.

By converting to a Roth you have to pay the taxes now, but you will have access to your retirement dollars later with no tax liability. And next year, Uncle Sam is making the "pay your taxes" part more palatable by allowing you to spread the tax liability over two years.

Should you consider converting your IRA to a Roth IRA?

You should consider this option if you:

• Have a large percentage of your assets in traditional IRA's,
• Can afford to leave the money alone for 5 years without touching it,
• Want to leave tax-free income to your heirs,
• Have retirement accounts that have suffered large losses which has lowered the existing balance of your IRA,
• Can afford to pay the taxes with funds outside the IRA account.

This is an important decision, so discuss it with your tax professional.

We are investigating this new option ourselves.

But one word of caution...we suggest that, if you can, pay all the taxes owed in 2010 when you effect the conversion. We strongly believe that tax rates will be higher when 2011 rolls around costing you more money than you may be able to pay.

Once this "tax boost" is absorbed by the federal government, given the latest budget that was passed and new "stimulus" that's being proposed, we fully expect to see much higher tax rates for all you responsible workers and savers either before 2010 is over or early in 2011.

How else can these spendthrifts in Washington continue down the path they've chosen?

More IRA Money News:

• Common IRA Mistakes to Avoid
• How to Make the Most of Your IRA
• 2009 Retirement Plan Contribution Limits