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Financial Planning / Tax Strategies
|Subject: Re: Roth IRA contribution limitations||Date: 2/21/2000 6:49 PM|
|Author: pmarti||Number: 29513 of 121219|
<< When you're checking to see if your AGI is below the $95K and/or $110K limit for making a Roth IRA contribution:
What line is that on the 1040 form, line 33? >>
New to taxes, are you? Did you really think it would be that easy?
To determine if you're eligible for a Roth contribution, you must compute your Modified AGI, or MAGI, no doubt after the wise men in Congress who brought it to you. Calculate Roth contribution MAGI as follows:
AGI (line 33 of the 1040) MINUS
any income on line 15b that comes from a conversion of a traditional IRA to a Roth IRA
- traditional IRA deduction (line 23)
- student loan interest deduction (line 24)
- Foreign earned income exclusion
- foreign housing exclusion or deduction
- exclusion of qualified bond interest shown on Form 8815, and
- exclusion of employer-paid adoption expenses shown on Form 8839.
MAGI is a concept that turns up frequently, but don't bother memorizing this version. It tends to change from provision to provision. Part of simplification, I guess.
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