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Hi folks,

REF:predicament about not being able to convert from a rollover/traditional IRA to a Roth IRA due to an AGI greater than $100,000.

Currently, I am employed with a 403b fund. In july 2003 I will go to a new employer when I intend to rollover the 403b fund into a rollover IRA and then (hoping to) convert to a Roth IRA. I later found out that because I am married I will have a gross-adjusted income of greater than $100,000 ( my wife's salary included). Apparently, this will exclude me from doing a conversion - even before I join my new employer.

I was browsing on the internet ... :

... and came across the following point about future tax laws that may become applicable in the next fiscal tax year... :

"You may convert a traditional IRA to an RSA ( Retirement Savings Account ) at any time. The amount converted will be taxable except to the extent that you have basis in your IRA. If you convert prior to January 1, 2004, you will be able to spread the tax on the conversion over a four-year period. For conversions on or after January 1, 2004, the total taxable amount will be included in your gross income for the year of the conversion...While there are no maximum income limitations on making contributions to RSAs, you may not contribute more than your compensation (wages) income to an RSA."

I am wondering if this new RSA might allow me to convert without the income limitation that I am currently experiencing.

Does anybody know about this? I would appreciate any comments.



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