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Income limit for Roth Conversions?
Folks:
We all know that if your income is too high, you cannot make a Roth contribution. You CAN make a Traditional IRA contribution, but then you don't really get the benefits of the Traditional or the Roth. But by making a nondeductible Traditional contribution followed by a Roth conversion, you can sidestep the income limits on funding a Roth conversion.
Great.
But I just noticed in Question 2 of Section 1.408A-4 of the Regulations:
"An individual with modified AGI in excess of $100,000 for a taxable year is not permitted to convert an amount to a Roth IRA during that taxable year."
Huh? I thought that there were no income limits for Roth conversions. What am I missing here?
Micah
