MAGI and traditional IRA distributions
My wife wished to start a Roth Ira with after tax money.
There are MAGI limits in opening a ROTH IRA.
We file jointly.
I have been taking qualified distributions from my traditional IRA.
My question is, are my qualified IRA distributions part of the MAGI limit calculations?
Permalink Submitted by Alan - IRA critic on Wed, 2018-11-21 03:35
Yes, the TIRA distribution is included in your joint MAGI for Roth contribution purposes. However, if either of you had CONVERTED those distributions to a Roth IRA, they would have been subtracted back out of your MAGI. The result of this rule is that conversions will not adversely affect the ability to make a regular Roth IRA contribution.