Roth conversions and MAGI limits on Roth IRA contributions

[Austin704]

Based on what I’m finding online it appears that Roth conversion amounts are not included in one’s MAGI for the purpose of determining income limits for Roth IRA contributions.

Just want to confirm with the experts here that I’m understanding correctly and nothing has changed in the rules for 2020.

Thanks!

 

[pb4uski]

I agree... I'm finding the same thing.

Publication 590-A Worksheet 2.1

 

[Austin704]

...and I was hoping pb4uski would chime in! Much appreciated.

 

[pb4uski]

Actually, I hadn't encountered this specific issue so it was a bit of a surprise for me... my gut reaction was that it wouldn't exclude Roth conversions... but I think it makes sense that it does.

And another great example of how there are many MAGIs for different purposes that do different modifications.

 

[RunningBum]

Same here, I was surprised but it probably does make sense.

btw I found Pub 590-A to be dated 2019, but it's got a section for changes for 2020 and there's no mention of any change to this.

 

[Austin704]

Thanks to you both...

 

[Alex The Great]

Do I understand it correctly, that it is NOT MAGI used for ACA eligibility?

 

[gauss]

^ Yes

It is a different, context-specific, MAGI for ACA subsidies vs allowed Roth conversions.

-gauss

 

[SevenUp]

See MAGI - Bogleheads for a list of and links to ten different MAGIs.