No. of Recommendations: 0
Greetings, JJmoneyless, and welcome. You wrote:

I have read in several places that one can convert a traditional IRA to a Roth IRA only if their joint AGI is less than $100,000 in the year of conversion. My joint AGI will be lower than $100,000 this year because of a pretax contribution to a 401k. Knowing how the IRS works, I'm not sure that they allow you to reduce GI by retirement contributions in determining AGI for the purpose of meeting the $100,000 test. Does anyone know for sure?

Fear not. The tax deferred contributions you make to a retirement plan like a 401k are not included in your AGI to determine the $100K limit for conversions of traditional IRAs to Roth IRAs. Those contributions are excluded from your gross income; therefore, they aren't included in any computation for AGI and won't be added back in for the Roth AGI limit test, either.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.