[[ TMFtaxes,]]Yo!!!![[ I just want to check on 2 things:]]OK...[[ 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 work?]]Yup again...no 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??!!!??]]Correctamundo. [[ 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.TMF TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. It'll help you with your 1998 taxes, and it's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
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