Message Font: Serif | Sans-Serif
No. of Recommendations: 1
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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.