Natixis Global Associates' Investor Quiz Tests Knowledge of 2010 Roth IRA Conversion Opportunity

BOSTON, Nov 19, 2009 (BUSINESS WIRE) --
NTXFF | Quote | Chart | News | PowerRating -- On January 1, 2010, an estimated 13 million American investors(1)
will have access to a unique special opportunity to convert traditional
retirement accounts and rollover IRAs into a Roth IRA that can grow
tax-free. However, a recent nationwide survey by Natixis Global
Associates (NGA) reveals that almost half of affluent American
investors still don't understand key aspects of Roth IRAs, or they have
incorrect information about this opportunity. To help investors
determine if conversion makes sense for them, NGA has developed the Roth
IRA Conversion Quiz.

Many of the quiz questions are based on questions from the 2009 Natixis
Global Associates survey, conducted in September by Mast Hill
Consulting, Inc. The survey polled over 800 affluent investors between
the ages of 24 and 86 with investable assets ranging from $100,000 to
over $3 million. With this quiz every investor can test their knowledge
about Roth IRAs.

"NGA's Roth IRA Conversion Quiz is an educational initiative
designed to provide valuable information and answer frequently asked
questions about the 2010 Roth IRA conversion opportunity," said Tracey
Flaherty, senior vice president of retirement strategy at NGA.
"Investors should educate themselves now, so they are ready to take
advantage of this unique opportunity if it fits their needs."

About Natixis Global Associates

Natixis Global Associates provides market-driven investment solutions to
institutions, intermediaries and individuals worldwide. It is part of
Natixis Global Asset Management.(2) In the U.S., Natixis Global
Associates includes Natixis Distributors, L.P. (member FINRA) and
Natixis Asset Management Advisors, L.P. (a registered investment
advisor). Both are located at 399 Boylston Street, Boston, MA 02116. www.ga.natixis.com

(1 )Ben Norquist and Michael Slemmer, "Roth
conversion rule changes will help many advisory clients," Financial
Planning, January 13, 2009 (http://www.fa-mag.com/online-extras/3763-roth-conversion-rule-changes-will-help-many-advisory-clients.html).

(2 )Headquartered in Boston and Paris, Natixis Global
Asset Management's assets under management totaled $723 billion (EUR495
billion) as of September 30, 2009.

Quiz on following page

The tax information contained herein is general in nature, is
provided for informational purposes only, and should not be construed as
legal or tax advice. Natixis Global Associates does not provide legal or
tax advice. Federal and state laws and regulations are complex and are
subject to change. Changes in such laws and regulations may have a
material impact on pre- and/or after-tax investment results. Natixis
Global Associates makes no warranties with regard to such information or
results obtained by its use. Natixis Global Associates disclaims any
liability arising out of your use of, or any tax position taken in
reliance on, such information. Always consult an attorney or tax
professional regarding your specific legal or tax situation. Pursuant to
IRS Circular 230, please be advised that, to the extent this
communication contains any tax advice, it is not intended to be, was not
written to be and cannot be used by any taxpayer for the purpose of
avoiding penalties under U.S. federal tax law.

Roth IRA Conversion Quiz

Natixis Global Associates

TRUE OR FALSE?

1. In Roth retirement accounts, assets grow tax-free and
qualified distributions are not taxed.

2. Contributions to Roth IRAs and Roth 401(k)s are tax deductible
in the year they are made, just like traditional 401(k)s.

3. Roth retirement accounts are best for people who expect to
have very low incomes in retirement.

4. In 2010, for the first time, it will be possible for people
with incomes above $100,000 to convert traditional retirement savings to
Roth accounts.

5. Investors who convert traditional retirement assets to Roth
status must pay tax on the income deducted for contributions to
traditional accounts in previous years.

6. All the taxes owed on conversions in 2010 must be paid in 2010.

7. It is necessary to pay a financial advisor or broker a
commission to convert assets to Roth.

8. Once invested in an IRA, an investor cannot reverse the IRA
conversion.

9. Roth IRAs can provide a hedge against future tax increases.

10. Roth IRAs are subject to minimum distribution requirements
when an investor reaches age 701/2.

The Roth IRA was established by Congress as part of the Taxpayer
Relief Act of 1997 to provide an attractive retirement savings vehicle
for middle income Americans. Since its creation in 1997, Roth assets are
now owned by over 18.6 million households (year end 2008). The key
benefits offered by the savings vehicle are tax-free asset growth and
distributions on a flexible schedule.

Answers on following page

1. TRUE. After conversion, all future growth in a Roth IRA
accumulates on a tax-free basis, if the owner takes "qualified
distributions."

2. FALSE. Roth IRA contributions are made with after-tax
dollars, unlike certain conventional tax-qualified savings alternatives
such as Traditional IRAs and 401(k) plans. Taxpayers must report and pay
federal income tax on any pre-tax contributions and all earnings in a
Traditional IRA or 401(k) for the year in which they do a conversion to
a Roth IRA.

3. FALSE. Future tax increases concern most people. Roth
IRA accounts provide an opportunity for tax-free earnings on retirement
money. During 2010, investors with any level of Modified Adjusted
Gross Income (MAGI) can convert to a Roth IRA, pay federal income tax
and then enjoy the potential of tax-free growth. Therefore, affluent
investors who do not need all their retirement savings for retirement
income may benefit from a Roth IRA conversion.

4. TRUE. The income restriction on Roth IRA conversions is
being waived throughout the year 2010. Historically, a Roth IRA
conversion has only been available to households with a MAGI of $100,000
or less.

5. TRUE. The Roth IRA conversion transaction requires an
investor to pay federal income tax (at ordinary income tax rates) on any
pre-tax contributions to a Traditional IRA or eligible traditional
401(k) assets and on all earnings in the traditional retirement accounts
at the time of conversion.

6. FALSE. A conversion is usually reported as
taxable income for the year in which it takes place. However, in the
year 2010, investors will be permitted to defer paying federal income
tax for the Roth IRA conversion until 2011 and 2012. Federal income tax
will be due on 50% of the taxable income in 2011 and 50% of the taxable
income in 2012.

7. FALSE. Another advantage of Roth IRA accounts is that
no conversion fee is required. Both investors working with financial
professionals and self-directed investors who are interested in
converting a portion or all of their assets to a Roth IRA may do so at no
cost.

8. FALSE. The IRS allows IRA owners to recharacterize or
reverse Roth IRA contributions from one type of IRA to another. This
applies to ordinary annual contributions as well as conversion
contributions. The deadline for recharacterization of a contribution or
conversion is the due date of the investor's tax return in the year of
contribution or conversion, usually April 15 of the year following the
conversion or, if an investor has filed for an extension, October 15 of
the following year.

9. TRUE. Roth IRA accounts provide potential tax-hedge
advantages. These accounts allow taxpayers to accumulate earnings on a
potentially tax-free basis. In order for Roth IRA earnings to qualify
for tax-free distribution, the investor must hold the assets for at
least five years and the IRA owner must be at least 591/2 years old. Tax
rates may increase or decrease in the future and it is not possible to
predict the impact.

10. FALSE. There are no minimum distribution requirements
at age 701/2 for Roth IRA investors. An investor may leave Roth IRA assets
untapped (and growing tax-free) until their death. In addition, if
married, the spouse of an investor is eligible to roll the Roth IRA
funds into their name following the death of the investor.

SOURCE: Natixis Global Associates

NATIXIS GLOBAL ASSOCIATES 
Jeanette Harrison-Sullivan, 617-449-2549 
jeanette.harrison-sullivan@ga.natixis.com

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