Q. Do you include the rollover amount when calculating the $100K limitation amount?A. The new Code section doesn't give you an answer. There are 3 possibilities (1) the entire amount is included, (2) only 1/4 of the amount is included or (3) none of the amount is included. The Committe Reports (in a footnote 51 to the Conference Agreement) state that "For this purpose, AGI is determined before any amount includible in income as a result of the rollover or conversion." A strict reading of the Code would require you to include it all. This cannot be the intent because anyone with a sizable IRA would be precluded. Including 1/4 for the limitation test doesn't make sense because you have to qualify for the rollover before you are allowed to only include 1/4 of the rollover in AGI. Thus, the only logical answer (which is supported by the Committee Reports) is don't include it in the AGI limitation.
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