Roth IRA Conversion & Marriage Status

[Guest SpeedyG]

I understand that any taxpayer who has an IRA can "convert" that IRA into a Roth IRA, as long as the taxpayer does not have adjusted gross income in excess of $100,000. If the taxpayer is married filing a joint return, the taxpayer and his or her spouse's income are taken into account in applying this $100,000 limit.

My personal situation has changed since I got married in June 1998. If you calculated an AGI for the combination of my wife and I, we would exceed the $100,000 limit. I would like to convert my 401(K) plan, which I just converted to an IRA last month, to a Roth IRA. I understand that I can file my taxes as single status for the 1998 tax year. What would be my status for a Roth conversion in 1998? Will the fact that I have to change my tax status in 1999 have any effect? Any help in this matter would be greatly appreciated.

[BPickerCPA]

If you got married in '98 and you are married as of 12/31/98, you cannot file as a single individual, you must file either married joint or married separate.

If your JOINT income exceeds $100K, you cannot convert to a Roth. If you already did, you must do a recharacterization.