DayDreaming
Full time employment: Posting here.
- Joined
- Jan 19, 2008
- Messages
- 848
There's been a lot of talk on this topic here but I'm really confused on one point:
I did an IRA -> Roth IRA conversion last year because my income was so low, seemed like a good move. Doing my taxes now, and I find that my AGA is just a little bit too high so I probably won't qualify for a health insurance subsidy under ObamaCare in 2014.
I know this subsidy will be based on MAGI, not AGI.
Here's the point I'm confused on: does MAGI include the taxable portion of my Roth Conversion (i.e. 1040 line15b)? I'm thinking that it does, but I found this article on MAGI which says "Subtract any income generated from the conversion of a tax-deferred retirement to a Roth IRA" - see step 3 here: How to Calculate MAGI | eHow.com
Basically I'm trying to figure out if I should recharacterize some of that Roth conversion in order to lower my MAGI a bit.
I did an IRA -> Roth IRA conversion last year because my income was so low, seemed like a good move. Doing my taxes now, and I find that my AGA is just a little bit too high so I probably won't qualify for a health insurance subsidy under ObamaCare in 2014.
I know this subsidy will be based on MAGI, not AGI.
Here's the point I'm confused on: does MAGI include the taxable portion of my Roth Conversion (i.e. 1040 line15b)? I'm thinking that it does, but I found this article on MAGI which says "Subtract any income generated from the conversion of a tax-deferred retirement to a Roth IRA" - see step 3 here: How to Calculate MAGI | eHow.com
Basically I'm trying to figure out if I should recharacterize some of that Roth conversion in order to lower my MAGI a bit.