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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!!
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