Roth IRA conversion
Does one need to include the Roth conversion amount in eligible income limit? Example, if income is $50,000, could one convert a $200,000 IRA to a Roth?
Does one need to include the Roth conversion amount in eligible income limit? Example, if income is $50,000, could one convert a $200,000 IRA to a Roth?
Permalink Submitted by Clyde Wolf on Sun, 2009-03-01 21:37
Idipaolo,
The conversion amount is not considered for the ROTH IRA Modified Adjusted Gross Income (MAGI).
When your MAGI is less than $100,000 you can make that TIRA to ROTH IRA conversion in 2009. January 1, 2010 that MAGI limit goes away.
You can learn more in IRS Pub 590: http://www.irs.gov/pub/irs-pdf/p590.pdf.
Page 62 has a work sheet to determine your MAGI for ROTH IRA purposes.