If I converted my rollover IRA to Roth IRA in 2021, does this disqualify me from receiving "Retirement Savings Contribution Credit" in 2021?

[MinhT1 · Accepted solution]

No.

The conversion of your IRA to a Roth IRA is taxable but does not in itself disqualify you the Retirement Savings Contribution credits. 

However, this conversion will add to your AGI and the increased AGI may disqualify you from this credit.

Please read this IRS document for more information.

[dmertz]

Also, if you had taxes withheld from the distribution from the rollover IRA and did not substitute other funds to complete the conversion of the entire gross amount, the amount of retirement contributions used to calculate the credit will be reduced by an amount equal to the portion of the distribution from the rollover IRA that was not converted.