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:
- Traditional IRA deduction
- Student loan interest deduction
- Tuition and fees deduction
- Foreign-earned income exclusion
- Foreign housing exclusion or deduction
- Exclusion of qualified bond interest shown on Form 8815
- 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
Determine whether 403(b) contributions meet federal guidelines. Contribution limits to this retirement plan are determined ...
Learn whether distributions from a 403(b) plan can be rolled over, where they can be rolled over to and what the income tax ...
Learn key differences between 401(k) and 408(k) plans. Employers provide different options to help employees save for retirement, ...
Find out the differences and the similarities between a 408(k) retirement plan and a simplified employee pension (SEP), and ...
Elder care, sometimes called elderly care, refers to services ...
Definition of Gold IRA
An IRS-allowed movement of assets into or out of an individual ...
Also known as Social Security Death Index. A list of people whose ...
The use – by a business owner or professional practitioner – ...
A term for the period of time leading up to actual retirement. ...