Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I just want to check on 2 things:
I have a ROTH conversion to which I have added 98 and 99 contributions as of last week. If my husband and I have under $150,000 total income including capital gains in out taxable account, we can each contribute $2,000 to Roths for 1999, yes? Even though he is contributing the maximum allowed to his 403B at work?

Also, if I buy and sell stock in my Roth, and it increases the value of that account, still this is NEVER counted in calculating my AGI, correct? It has no bearing on my tax bracket or elegibility to contribute to a Roth, right??

So theoretically, one could earn $20,000 a year at work and $2,000 capital gains in taxable account, and even if their Roth gained $300,000 in value over a year (okay, not my case at ALL unfortunately, but I'm using an extreme example to make the point!), they'd still be in 15% tax bracket??!!!??

Someone asked me about this the other day, and though I thought I knew the answer I wanted to doublecheck it.
Thanks in advance.
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.