We would like to rollover a traditional IRA (in my husband's name; a rollover from an old 401K)to a Roth IRA. My husband's gross earnings are about $200,000. Since we file jointly, is that income divided in half to calculate AGI for purposes of qualifying for a Roth IRA?

No. Adjusted Gross Income is the determining factor in conversion eligibility. SInce you file a joint return, you have to consider total AGI shown on the return, regardless of the source of the income. Look at IRS Publication 590, starting on page 36, for more information.

Hope this helps.

New version of Publication 590

http://www.irs.ustreas.gov/prod/forms_pubs/pubs/p590toc.htm



[This message has been edited by pax (edited 01-13-2000).]

casper -
Although you can't do a Roth conversion at your current AGI, I do have a question for you.

1. Did you want to go for the Roth because you just wanted one or read something that made you hope it would be advantageous, or did you actually get some numbers to see if a Roth may be good for you?

Art