Convert? What about my Child Credit??

[Guest Eric]

It seems that if I covert my $90,000 traditional IRA to a Roth, my increased AGI (even if I do the 4-year spread) will then exceed the allowable limit ($110,000) for claiming the new Child Credit. Since I have three kids, all under age 7, I believe I will be blowing $1200 ($400 X 3) per year for the next four years. If I don't "spread" I will only lose one year of Child Credits but I will owe a lot of tax money at a much higher bracket. Am I wrong or does this turn the Roth IRA conversion possibility into a bad idea for me?

[Guest Kevin]

In addition to the possibility that a ROTH

conversion can put you over the income limits

for the child tax credit, will it similarly

affect the HOPE college credit, and, as an

increase to one's AGI, will it negatively

affect the calculation of allowable medical

expenses which must exceed 7.5% of AGI??

[Guest Eric]

Kevin,

From what I've read, the increased AGI impacts everything. I've seen the 7.5% floor on medical deductions specifically mentioned, and while I've read nothing specific re HOPE scholarships, I would assume that would be impacted also.