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Subject:  Re: 100K AGI limit for Roth IRA Date:  10/15/1997  10:50 AM
Author:  ckelly7279 Number:  510 of 127613

Q. Do you include the rollover amount when calculating the $100K limitation amount?

A. The new Code section doesn't give you an answer. There are 3 possibilities (1) the entire amount is included, (2) only 1/4 of the amount is included or (3) none of the amount is included.

The Committe Reports (in a footnote 51 to the Conference Agreement) state that "For this purpose, AGI is determined before any amount includible in income as a result of the rollover or conversion."

A strict reading of the Code would require you to include it all. This cannot be the intent because anyone with a sizable IRA would be precluded. Including 1/4 for the limitation test doesn't make sense because you have to qualify for the rollover before you are allowed to only include 1/4 of the rollover in AGI. Thus, the only logical answer (which is supported by the Committee Reports) is don't include it in the AGI limitation.

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