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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Re: Tax Strategies-IRA Conversions that Benefit Date: 9/7/2000 7:07 PM
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<<Question for Roy Lewis on the 05 Sept 00 "IRA Conversions that Benefit You">>

You got 'em, Dude!!!

<<Can a retired person, over 59 1/2, without current
earned income (income is pension, social security and
traditional IRA withdrawals)go back to work, earn $5 to $10 K, start an Roth IRA and move down, but not out,stocks into the Roth IRA to obtain the tax benefits you suggest?>>

Sorry, but I don't see what you're trying to accomplish here.

If all you are trying to do is to make a conversion from your traditional IRA account to a Roth IRA account, you have no problems. As the article pointed out, you don't need ANY earned income to make a valid conversion. You only have to be concerned about your modified AGI. If it's over $100,000, then you are barred from making a conversion from your traditional IRA to a Roth IRA account...regardless if you have earned income or not.

Now, if you take a part time job and have earned income, you might also be able to make a Roth IRA contribution...again assuming that you are under the modified AGI limits.

But don't confuse contributions with conversions. They are completely different animals. You NEED earned income to make a contribution to a Roth IRA. You DON'T NEED earned income to make a conversion from a traditional IRA to a Roth IRA.

If I'm missing your point, please let me know and tell me what you are trying to do, and I might be able to help tell you how to do it.

TMF Taxes
Roy

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