Do Roth Conversions Count Towards Roth IRA Income Limits?

One question we often get is whether Roth Conversions count towards the Modified Adjusted Gross Income (MAGI) thresholds that phase out Roth contributions.  The short answer is “no”. However, it is important to note that while Roth Conversions don’t count towards those thresholds, IRA distributions do. So, when you’re charting your client’s course toward the 0% tax bracket, make sure that if you are utilizing the Roth IRA,  you don’t make another financial decisions that may, in the end, prevent your from doing it.

Don’t forget that the updated and revised version of The Power of Zero will be released through Penguin Random House in September.  It’s available for pre-order right now.

September also happens to be the month where we’ll be releasing our The Power of Zero documentary.  Here is a non-exhaustive list of who is in the documentary so far:

Ed Slott, Tom Hegna, Van Mueller, David Walker, Larry Kotlikoff–PhD, Martin Eichenbaum–PhD, George P. Schulz–PhD, Dr. Ben Carson, Armstrong Williams, Don Blanton, Congressman Tom McClintock, the Governor of Utah Gary Herbert and others.