I've read that your AGI must be below $100,000 to convert from a traditional ira to a roth ira. Is this the maximum AGI for an individual taxpayer? What is the maximum AGI allowed for a married couple filing jointly looking to convert one spouses account.

If you are married, you can only qualify if you file jointly. The income threshold for married couples filing jointly is a MAGI of 100,000. The value of the converting IRA is not counted in this income threshold.

You may want to download Gary Lesser's article from the roth web site[URL=http://www.rothira.com] for some of the details. You will find multiple articles at this site.

If you are near the 100,000 mark, you may want to consider options to shift income out of 2000 in to early next January such as bonus checks or commissions. Some employers can offer this flexibility. Note, shifting deductions is not helpful since this does not affect your front page income numbers. Beware of hidden sources such as mutual fund distributions or state tax returns.

If you own a business or file a Sched C, you may want to invest in some of the marvelous technology and use the Section 179 expense option to offset some of your income. You could also shift income earning assets to muni bonds. Your accountant may have some other ideas.

Do not wait to the end of the year to get the process started. Start monitoring your situation and working with your tax professional.

[This message has been edited by John G (edited 03-21-2000).]