Conversion to Roth IRA
Regarding the conversion/rollover of a regular IRA to a Roth IRA in 2009, I have two questions:
1) Do you have to include in your AGI the amount of the (rollover) distributions which are made from your regular IRA, thus increasing your AGI and potentially disqualifying you from making the rollover? (I know the AGI limitations will be eliminated in 2010, but not sure what’s happening in 2009.)
2) I know you need to have earned income to make a contribution to a Roth IRA, but do you need earned income to rollover a regular IRA to a Roth IRA?
Thanks so much!
Permalink Submitted by Alan Spross on Tue, 2009-01-20 03:30
1) No, the amount of the Roth conversion is NOT counted in calculating the 100,000 modified AGI limit to convert. Neither is your RMD if you take out prior year RMDs in 2009. There is no 2009 RMD per the recent legislation.
2) No, there is no earned income requirement for making a conversion contribution. Earned income is only required for a regular IRA contribution.
Permalink Submitted by Al Fry on Tue, 2009-01-20 13:52
2) ……or Roth contribution.