Can my spouse and I convert our IRAs to Roth IRAs regardless of earned income?

By Denise Appleby AAA
A:

You may be eligible to convert your Traditional IRA to a Roth IRA regardless of whether you have earned income. However, if your modified adjusted gross income (AGI) exceeds $100,000, you are not eligible for a Roth conversion. If you meet the following conditions, you are eligible to convert your assets to a Roth IRA:

1. Your modified AGI is not more than $100,000.
2. You are not a married individual filing a separate return.

For Roth IRA purposes, your AGI as shown on your return is modified as follows:

1. Subtract any income resulting from the conversion of your IRA to your Roth IRA (conversion income).

2. Add the following deductions and exclusions:

  1. Traditional IRA deduction
  2. Student loan interest deduction
  3. Tuition and fees deduction
  4. Foreign-earned income exclusion
  5. Foreign housing exclusion or deduction
  6. Exclusion of qualified bond interest shown on Form 8815
  7. Exclusion of employer-paid adoption expenses shown on Form 8839

To determine your AGI, please refer to IRS Form 1040.

To learn more, read Did Your Roth IRA Conversion Pass Or Fail?

This question was answered by Denise Appleby
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