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Subject:  Re: Trad IRA to Roth Conversion Date:  6/14/2008  1:55 PM
Author:  ptheland Number:  101050 of 127753

In my traditional IRA I have some contributions which were non-deductible.


Can I convert those funds over to my Roth IRA without tax consequences

No. Everything that comes out of your traditional IRA must be prorated between the taxable and non-taxable portions.

or is there an income limitation for doing that?

Yes. To convert money from a traditional IRA to a Roth, you have to have less than $100k in MAGI. That income limitation is scheduled to be lifted in a couple of years (2010, I think), so if you make too much now, you may be able to do a conversion then.

My wife and I file jointly and are under the income limitations for contributing to a Roth, but I thought I heard somewhere that the income limitation for doing a conversion was lower than the contribution limitation.

For a married couple, it is. For a single person, it's the other way around.

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