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Author: TMFRadish Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121599  
Subject: Roth IRA contribution limitations Date: 2/21/2000 4:53 PM
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Hi,

When you're checking to see if your AGI is below the $95K and/or $110K limit for making a Roth IRA contribution:

What line is that on the 1040 form, line 33?

If you have an amount on line 15b (Total IRA distribtions) that is entirely composed of the 2nd year's portion of an IRA to Roth IRA conversion in 1998 spread out over four years, do you subtract that amount from the AGI on line 33 before checking against the $95K/$110K limit?

Phil
TMFRadish
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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29513 of 121599
Subject: Re: Roth IRA contribution limitations Date: 2/21/2000 6:49 PM
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<< When you're checking to see if your AGI is below the $95K and/or $110K limit for making a Roth IRA contribution:

What line is that on the 1040 form, line 33? >>

New to taxes, are you? Did you really think it would be that easy?

To determine if you're eligible for a Roth contribution, you must compute your Modified AGI, or MAGI, no doubt after the wise men in Congress who brought it to you. Calculate Roth contribution MAGI as follows:

AGI (line 33 of the 1040) MINUS

any income on line 15b that comes from a conversion of a traditional IRA to a Roth IRA

PLUS

- traditional IRA deduction (line 23)
- student loan interest deduction (line 24)
- Foreign earned income exclusion
- foreign housing exclusion or deduction
- exclusion of qualified bond interest shown on Form 8815, and
- exclusion of employer-paid adoption expenses shown on Form 8839.

MAGI is a concept that turns up frequently, but don't bother memorizing this version. It tends to change from provision to provision. Part of simplification, I guess.

Phil Marti
Tax Preparer

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