The affect of Roth conversion income on deductibility of a Traditional IRA contribution
Is the additional taxable income triggered by a Roth conversion counted as part of the MAGI (modified adjusted gross income) figure used to determine deduction eligibility of a Traditional IRA contribution made the same year?
Ex: married couple filing jointly, husband does a large Roth conversion, wife makes a Traditional IRA contribution the same year
Permalink Submitted by Alan - IRA critic on Mon, 2020-08-31 19:27
The conversion income IS included in MAGI for TIRA deduction purposes, but the deduction is limited only if at least one of the spouses is an active participant in an employer plan for the tax year. If wife is a participant the MAGI limit is lower than if husband is and wife is not. If neither are, the deduction is allowed regardless of MAGI.