Message Font: Serif | Sans-Serif
No. of Recommendations: 0
During 1999 I converted my Tradional IRA to a Roth IRA. I converted the entire amount, using two transactions about a month apart. I file jointly and anticipated our AGI to exceed 100,000. I used 1000.00 of my wifes 2000.00 allowable contribution to fund a traditional IRA solely to lower our modified AGI under 100,000.00. The coverted amount was about 8000 dollars, which I understand is taxable income. If I understand the rules regarding conversions, this amount should NOT be taken in to account for the Modified AGI rules to allow my conversion to remain. Under the 1999 Turbo Tax program, the income still shows under AGI and indicates that the Roth conversion exceeds limits. I would think that after answering all the questions regarding conversions, which I have checked numerous times, the program would show the conversion amount as taxable but for IRA purposes, show a modified adjusted gross of less than 100 thousand. It shows 108 thousand,disallowing my Roth conversion on the basis of over contributing..HELP!!
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.