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emcpadden: "I'm trying to understand the rules regarding converting my tradition IRA into a Roth IRA and I'm getting more and more confused.

My 1999 AGI is just above 95k and I expect it to go over 100k next year.

Can I convert my IRA to a Roth for the 1999 tax year? Or am I too late?"


I am no expert, but my understanding is that conversions are dated based on the year of conversion; IOW, you are too late for 1999.

"If so can I convert the entire IRA or is my current income such that I can only convert a portion of it?"

NA, see above, but if you were able to convert, you could convert as little or as much (including all) as you chose.

"I plan on getting married next year and my future wife will probably have an AGI of around 35k next year. If I can't convert it this year, will it be possible to convert it next year if we were to file a joint tax return?"

Probably not. Limit for conversions is 100k modified AGI, and does not depend on marital status; IOW, two singles with MAGI of 90k and 35K could each convert, but if married, filig jointly, then MAGI of 125k would disqualify both (or eiher) from converting. IIRC, married filing separatly cannot convert.

"If I am able to convert it, is it still possible to spread the taxes over 4 years?"

No. That was a one-time deemed electio for 1998 conversons. The only way to control this would be to convert a portion of the IRA each year, assuming that you were eligible for conversions each year.

"Can I take money out of the IRA to pay the taxes on the conversion?"

Yes, but you will owe 10% penalty if less than 59 1/2.

"If I am able to convert it, is there any limit to the amount of money that can be contributed to a Roth IRA in a given year (that is if I was eligible)?"

Just the usual limits, maximum of lesser of $2000 or earned income, subjecet to all usual requirements.

"Thanks alot in advance for helping me thru this confusion."

Probably not what you wanted to here, but hope this helps. If I am incoorect in any respect, the resident pros will chime in and correct me.

Regards, JAFO


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