Roth IRA income limits

Forum|Forum|6 years ago
December 14, 2019
2 replies
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We plan on converting a portion of a traditional IRA to a Roth IRA. If the amount we convert plus our other income exceeds the cap of $193,000, are we prohibited from make a contribution to a Roth IRA? For example, say our MAGI was $130,000 and we converted $100,000, is the $100,000 added to MAGI?

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macuser_22

Alumni - Champ

The amount of a Roth conversion is subtracted from AGI to get the MAGI - see worksheet 2-1 in IRS pub 590A

https://www.irs.gov/publications/p590a#en_US_2018_publink100025085

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Bsch4477

Level 15

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NCperson

Level 15

can we go back to the original post? Are we mixing terminology for a 'contribution' and a 'conversion'?

The contribution is subject to the MAGI of $193,000 (new money going into a ROTH)

But

the 'conversion' of money already in a Traditional IRA to a Roth IRA has no limit; you could convert the whole ball of wax in one year, no matter how big it is, if you wanted to.

@jamesrath1970 - are you trying to do both a conversion and a contribution? or were you mixing terms inadvertently?

macuser_22

Alumni - Champ

The original question (as I understood it) asked if they did a Traditional IRA to Roth *conversion* would that conversion be added to the MAGI to limit a separate Roth *contribution* in the same year. The answer is no, as the IRS Pub 590A MAGI worksheet 2-1 says, a conversion is subtracted from the AGI to determine the MAGI for Roth contribution limits so the amount of conversion does not count.

(TurboTax follows that rule - Traditional IRA to Roth conversions are not added to the MAGI for the purpose of limiting Roth contributions.)

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**