Roth conversion exclusion
Kindly help me to understand whether any income is excluded when calculating for eligibility to convert from tradition to Roth. Is RMD excluded from the 100K total?
Kindly help me to understand whether any income is excluded when calculating for eligibility to convert from tradition to Roth. Is RMD excluded from the 100K total?
Permalink Submitted by Alan Spross on Wed, 2009-01-28 19:52
Yes, both an RMD and the converted amount itself does not count toward the 100,000 modified AGI limit. But what would have been a 2009 RMD has been waived, so if an IRA owner takes out what would otherwise have been a 2009 RMD, that amount WILL count toward the 100,000 limit for 2009.
Permalink Submitted by charles lore on Thu, 2009-01-29 01:40
for MAGI also add back in deductions you took for tuition expenses and loan interest and add in inteerst on savings bond redemptions used for tuition.. ( this was never in AGI)
Permalink Submitted by Louis Napoli on Thu, 2009-01-29 07:30
Alan:
I thought that both MRDs and taxable IRA distributions did not have to be included in AGI in determining eligibility to make a Roth IRA conversion. Your post seems to contradict that.
Am I wrong?
Thank you very much.[/b]
Permalink Submitted by Alan Spross on Thu, 2009-01-29 22:43
The RMD and converted amounts do not count, but non RMD distributions that are not converted are still included. Also, with respect to RMDs, it’s only IRA RMDs, not employer plan RMDs, that can be excluded.
See Pub 590, p 60.