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
Learn why investors may have to pay taxes on dividends from master limited partnerships, or MLPs, held in individual retirement ...
Learn about the tax benefits of owning units in a master limited partnership, and understand how distributions are treated ...
For individuals who are just starting to save, certificates of deposit can be a good place to start, but the interest rates ...
Absolutely! Just as finding a good mechanic will help keep your car running smoothly, finding a good broker or financial ...
The amount of pension benefit accrued by an employee who had ...
A tax-efficient retirement savings account available in Great ...
Senior move managers (SMMs) help seniors downsize and relocate ...
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 ...