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[[ TMFtaxes,]]


[[ I just want to check on 2 things:]]


[[ I have a ROTH conversion to which I have added 98 and 99 contributions as of
last week. If my husband and I have under $150,000 total income including
capital gains in out taxable account, we can each contribute $2,000 to Roths for
1999, yes?]]

Yup...that's correct. The limitation for contributions are different than the limitation for conversions.

[[ Even though he is contributing the maximum allowed to his 403B at

Yup problem with the 403b plan. As long as your AGI is under the limitation, you are eligible for a Roth IRA contribution.

[[ Also, if I buy and sell stock in my Roth, and it increases the value of that
account, still this is NEVER counted in calculating my AGI, correct?]]

Correct...kinda. NEVER is a pretty long time. If you were to take a distribution from the Roth IRA (which might be taxable because it is an "early" distribution), THAT income would count against your AGI.

But if you leave the funds in the Roth, and don't take a withdrawal, any earnings in the Roth IRA will NOT count against your AGI, either currently or in the future.

[[ It has no
bearing on my tax bracket or elegibility to contribute to a Roth, right?? ]]

Righto...unless you take a taxable distribution.

[[ So theoretically, one could earn $20,000 a year at work and $2,000 capital
gains in taxable account, and even if their Roth gained $300,000 in value over a
year (okay, not my case at ALL unfortunately, but I'm using an extreme example
to make the point!), they'd still be in 15% tax bracket??!!!??]]


[[ Someone asked me about this the other day, and though I thought I knew the
answer I wanted to doublecheck it.]]

Hope this helps. You might want to read more about the Roth IRA issues is my series of posts on the Roth IRA in the Taxes FAQ area. Check it out. You'll learn even more...and your questions above are answered in even more detail.

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