The New 2010 Roth Conversion Opportunity – Welcome to the Roth RaceTax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 The views expressed in this presentation are those of the investment professional and are subject to change at any time. These views do not necessarily reflect the views of Pioneer or others in the Pioneer organization.

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Basic Framework of Roth Conversion Related Tax-Cut Extensions

Extends Bush-era tax cuts for two years (2011 & 2012)

Extends EGTRRA tax rates for all income levels

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Income Tax Outlook Before Tax Bill (EGTRRA Sunset)(Federal Marginal Tax Brackets: Married, Filing Jointly)

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2010 2011

25% 28%

28% 31%

33% 36%

35% 39.6%

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25%

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Impact on 2010 Roth Conversion Decision

Extension of EGTRRA marginal tax rate structure

– Eliminates the downside of two-year tax spread option on 2010 Roth conversions

– Enhances the tax-savings potential associated with two-year tax-spread option—especially for middle-income household

Reframes the Roth conversion discussion for last two weeks of 2010

4

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A Tax Savings of Up to 11% on 2010 ConversionsComparison of Spreading Conversion Taxes—With and Without EGTRRA Extension

Case Study: $100,000 AGI (Married, Filing Jointly)Case Study: $100,000 AGI (Married, Filing Jointly)

Conversion Amount

Use 2011/12 Tax SplitTax Savings on

Conversionwith EGTRRA Sunset with EGTRRA Extension

$50,000 $14,000 $12,500 $1,500 = 11%

$100,000 $28,146 $25,516 $2,630 = 9%

$150,000 $43,646 $39,516 $4,130 = 9%

$200,000 $59,146 $53,516 $5,630 = 10%

$500,000 $163,969 $150,966 $13,003 = 8%

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A Tax Savings of Up to 11% on 2010 ConversionsComparison of Spreading Conversion Taxes—With and Without EGTRRA Extension

Case Study: $300,000 AGI (Married, Filing Jointly)

Conversion Amount

Use 2011/12 Tax SplitTax Savings on

Conversionwith EGTRRA Sunset with EGTRRA Extension

$50,000 $18,000 $16,500 $1,500 = 8%

$100,000 $36,000 $33,000 $3,000 = 8%

$250,000 $92,043 $84,108 $7,935 = 9%

$500,000 $191,043 $171,608 $19,435 = 10%

$1,000,000 $389,043 $346,608 $42,435 = 11%

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$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2010

25%

28%

33%

35%

2010 Using Two-Year Tax Split

Tax Legislation Completely Reframes the Potential Value of the Two-Year Tax Split

Taxable Income

$150,000

Taxable Income

$150,000

Taxable Income

$150,000

Roth Conv.

$100,000 Roth Conv.

$50,000

Roth Conv.

$50,000

35%

33%

28%

25%

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Tax Rates

Assuming income remains stable, splitting a conversion over two years helps to avoid tax bracket creep.

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This material is not intended to replace the advice of a qualified attorney, tax advisor, or insurance agent. Before your client makes any financial commitment regarding the issues discussed here, make sure he or she consults with the appropriate professional advisor.

Pioneer Investments 60 State Street

Boston, Massachusettswww.pioneerinvestments.com

2010 Pioneer Investments

Pioneer is not affiliated with Convergent Retirement Plan Solutions, LLC