Magi

[ed36H]

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

[Bees Knees]

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.