Does the addition of the converted amount (taxable) to one’s income affect his/her eligibility to make a contributory Roth contribution?
No. Income limits for new Roth contributions are still in effect. To some extent, even if one is not eligible to make a contributory Roth contribution, the individual could contribute to a traditional IRA and immediately convert the contribution to a Roth IRA. An individual must be younger than 70½ to do this (contribute to a traditional IRA), since traditional IRA contributions cannot be made after attaining age 70½. However, this additional income is part of AGI for all other income taxes, so it could affect whether or not current (not future) Social Security benefits are taxable, the level of the premium payable under Medicare Part B (if you are a current Medicare participant), or whether or not additional taxes may be payable as a result of your being subject to alternative minimum tax (AMT). 4 11. Does the conversion of either spouse affect the taxation of the other’s IRA? No. These are individual retirement accounts. However, if the spouses are filing jointly, there could be a ta
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