Rules of ROTH IRA Conversions&How to Take Advantage of the Loop Holes
...ermining whether you should consider a ROTH IRA conversion is figuring out if you are eligible. To be eligible to convert your current IRA to a ROTH, you must have modified adjusted gross income (basically your taxable income with a couple of additional items added back including deductible contributions to an IRA, foreign exemptions, deductions for student loans, and employer paid adoption expenses that may have been excluded) of less than $100,000. For a clear and in depth understanding of modified adjusted gross income visit: http://www.fairmark.com/rothira/modagi.htm. It is important to note that the IRA distribution amount that you are rolling over does not count towards your modified adjusted gross income. Listed below are other situations that would not be eligible for a ROTH IRA conversion: „« If your filing status is married filing separately, you don't qualify unless you lived apart from your spouse for the entire year. „« If your modified adjusted gross in...