Permalink Submitted by Alan Spross on Fri, 2010-04-23 20:32
Future gains within the Roth would not affect AMT, but future withdrawals of those gains could be impacted by the AMT if you take them out before your Roth is qualified (5 years and age 59.5).
Permalink Submitted by mk foss on Sat, 2010-04-24 02:14
The AMT is very complicated and difficult to give definitive advice about. As Alan said gains within the Roth after the conversion have no affect on the AMT. If there were a nonqualified distribution so that some Roth income was taxed within the first 5 years, that income would enter into the AMT calculation but is unlikely to have a negative effect on the AMT. Higher income usually reduces exposure to AMT unless the higher income is related to capital gain – but as I said earlier the AMT is complicated and the results can surprise you.
Permalink Submitted by Alan Spross on Fri, 2010-04-23 20:32
Future gains within the Roth would not affect AMT, but future withdrawals of those gains could be impacted by the AMT if you take them out before your Roth is qualified (5 years and age 59.5).
Permalink Submitted by mk foss on Sat, 2010-04-24 02:14
The AMT is very complicated and difficult to give definitive advice about. As Alan said gains within the Roth after the conversion have no affect on the AMT. If there were a nonqualified distribution so that some Roth income was taxed within the first 5 years, that income would enter into the AMT calculation but is unlikely to have a negative effect on the AMT. Higher income usually reduces exposure to AMT unless the higher income is related to capital gain – but as I said earlier the AMT is complicated and the results can surprise you.