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Magi

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    Magi

    Can this taxpayer filing MFJ with the following 1040 line amounts still be able to convert $75000 from his traditional IRA to a Roth IRA ? Is he still below the Modified Adjusted Gross Income (MAGI) Roth conversion limit of 100,000? In this situation, how is the MAGI amount computed?

    1040 entries are as follows:

    Line 8a (Interest income) is 77204
    Line 12 (Sole proprietor net income) is 24779
    Line 15b (Taxable distribution due to conversion from Traditional IRA to Roth) is 75000
    Line 22 Total is 176983
    Line 27 (1/2 Self-employment tax) is 1751
    Line 28 (Self-employed SIMPLE IRA contribution) is 12000
    Line 29 (Self-employed health insurance) is 1248
    Line 36 Total adjustments is 14999
    Line 37 AGI is 161984

    #2
    Modified AGI for purposes of Roth IRAs is explained in detail on page 13-14 in TTB. It says it is for purposes of making a Roth IRA contribution, but the same definition of modified AGI applies to conversions.

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