Converting A Traditional IRA To A Roth IRA
Conversion of a Traditional IRA to a Roth IRA results in the converted funds becoming taxed in the year they are converted (with the exception of non-deductible assets).
Prior to 2010, two circumstances prohibit a conversion to a Roth IRA: Modified Adjusted Gross Income exceeding $100,000 or the participant's tax filing status is Married Filing Separately. With recent legislation, as part of the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), the modified AGI requirement of $100,000 and not be married filing separately criteria was removed in 2010.
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