fiddle Posted January 10, 2022 Share Posted January 10, 2022 If I have a rolloever from tax deferred 403b to Roth IRA, which will be taxed, does it count toward the $129K income limit for contributing to Roth IRA? Link to comment Share on other sites More sharing options...
Carol V. Calhoun Posted January 11, 2022 Share Posted January 11, 2022 No. Under Code section 408(c)(3)(B)(i), "adjusted gross income shall be determined in the same manner as under section 219(g)(3), except that any amount included in gross income under subsection (d)(3) shall not be taken into account." Under 408(d)(3)(C), "The conversion of an individual retirement plan (other than a Roth IRA) to a Roth IRA shall be treated for purposes of this paragraph as a distribution to which this paragraph applies." Thus, a Roth conversion is not treated as part of modified adjusted gross income for purposes of the $129K income limit for contributing to a Roth IRA. Dave Baker, Luke Bailey and fiddle 3 Employee benefits legal resource site The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances. Link to comment Share on other sites More sharing options...
fiddle Posted January 11, 2022 Author Share Posted January 11, 2022 Thank you for the response. So I get it that it's not part of the adjusted gross income and I don't need to consider that for Roth contribution purpose. A follow up question: If it's not part of adjusted gross income, where does the rollover/conversion amount enter the picture to be taxed, when filing for Form 1040? E.g. in Form 1040 for year 2020 (which should be similar to 2021, 2022): which line should the rollover/Roth conversion amount be entered? Link to comment Share on other sites More sharing options...
bito'money Posted January 12, 2022 Share Posted January 12, 2022 fiddle - Lines 5a and 5b. It is part of AGI on your return. It is just excluded from modified AGI for purposes of determining your Roth contribution limit (see publication 590-A - worksheet 2.1). fiddle 1 Link to comment Share on other sites More sharing options...
fiddle Posted January 13, 2022 Author Share Posted January 13, 2022 5 hours ago, bito'money said: fiddle - Lines 5a and 5b. It is part of AGI on your return. It is just excluded from modified AGI for purposes of determining your Roth contribution limit (see publication 590-A - worksheet 2.1). Thanks! Link to comment Share on other sites More sharing options...
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