Message Font: Serif | Sans-Serif
No. of Recommendations: 0
<< a family member who in prior years earned too much to qualify for a ROTH, accrued enough losses this year to just get in under the income limit inorder to qualify for a ROTH. He will be opening a ROTH and making a contribution for 1999. Will he also be able to convert his whole IRA account to ROTH this year even though in prior years his income was too high.? >>

Just a quick fact check here. The ability to contribute to a Roth is governed by Modified Adjusted Gross Income (MAGI). Since only $3,000 of net capital losses can be used in one year, that's the maximum amount of losses that could affect his elibility for a Roth contribution.

If his year 2000 MAGI is under $100,000 he can convert his traditional IRA, all or a portion, to Roth in 2000. (MAGI for this purpose does NOT include the income from the conversion.)

Phil Marti
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.