If you are considering a Roth conversion from a Traditional IRA for 2011, a strategy that has been employed in the past by financial advisors is to have multiple Roth’s. Each Roth will be a separate asset class. This way if there is a decrease in valuation the conversion can be reversed and the taxable event rescinded by converting back to a Traditional IRA from the Roth. The reversal deadline for FY2011 will be October 15, 2012.
Also there is no longer an income cap for conversions. In previous years it was $100,000 but that is no longer an issue.