Income limit for Roth Conversions?

[msindc1]

Folks:

We all know that if your income is too high, you cannot make a Roth contribution.  You CAN make a Traditional IRA contribution, but then you don't really get the benefits of the Traditional or the Roth.  But by making a nondeductible Traditional contribution followed by a Roth conversion, you can sidestep the income limits on funding a Roth conversion.

Great.

But I just noticed in Question 2 of Section 1.408A-4 of the Regulations:

"An individual with modified AGI in excess of $100,000 for a taxable year is not permitted to convert an amount to a Roth IRA during that taxable year."

Huh?  I thought that there were no income limits for Roth conversions.  What am I missing here?

Micah

[rbynaker · Accepted solution]

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@msindc1 wrote:

Huh?  I thought that there were no income limits for Roth conversions.  What am I missing here?

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You're missing the repeal of the AGI limits on conversions that went into effect for TY 2010.  See Section 512.

https://www.govinfo.gov/content/pkg/PLAW-109publ222/pdf/PLAW-109publ222.pdf

Rick

[tyler919]

withdrawn based on earlier answer

[msindc1]

Oh, see, I missed that because I was still in elementary school then.  😉

Thank you very much!  I wonder, then, why the Regulations still say that you can't do a conversion with income greater than $100,000?  Sigh.