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1) What constitutes MAGI? I found "Adjusted gross income ("AGI") represents your total income reduced by certain deductions known as "adjustments," but before you take your itemized deduction or standard deduction, and before you take the deduction for personal exemptions."

Right. AGI is the starting point. The Modification (hence MAGI - Modified AGI) for this purpose is removing the income related to the conversion. An example might help. Let's give you $80k in W-2 income, $5k in interest, and $25k from converting a traditional IRA to a Roth. Your AGI will be $110k. Your MAGI is $110k less $25k or $85k. That is low enough for the Roth conversion to be allowable.

--Peter
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