RE:$100k ($150k married)in ordinary (AGI) income
I'm seeing some confusion on this thread related to the 100K and 150K limits. Here's what I understand:
1) To transfer funds from an existing "regular" IRA to a ROTH IRA, your AGI cannot exceed $100K in the year the transfer is made. This is without regard to single or married filing status.
2) To make contributions to a ROTH IRA, there are income limits. Single filers have AGI limits of $95K to make full contribution of $2,000, and make make partial contributions if AGI is between $95K and $110K. Married filers have a limit of $150K for full contributions and partial contributions between $150K and $160K.
Also, any gains made as part of the conversion are not included in AGI.
IMO, if you have doubts whether your AGI will be under $100K this year, and you want to convert, I would wait until your AGI number is more certain. You can, of course, open a ROTH IRA for 1997, and convert older IRA funds later in the year (if your AGI is less that limits in point 2, above.)
My 2 cents.
Bill |
