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What is MAGI? (not the 3 kings?)


Guest Sheila

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What is MAGI?

  • 2 weeks later...
Guest msunner
Posted

Does AGI = MAGI? I was told that MAGI was the amount after itemized and standard deductions, i.e., taxable income. If true, a person who has AGI in excess of of $100K could qualify to convert to the Roth IRA. Please clarify.

Posted

You should seek the advice of a tax advisor if you have any questions about this at all. MAGI is basically AGI from the 1040 front page, before you take your deductions. Furthermore, you must add back any otherwise deductible IRA contributions, certain other excludable items (foreign earned income exclusion is one)and Series EE bond interst from IRS Form 8815. The taxable amount of the conversion is not included in MAGI. Required Minimum Distributions are included in MAGI for the next couple of years anyway.

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