Non-traditional IRA rollover, and AGI

Forum|Forum|11 months ago
April 13, 2025
1 reply
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Does a non tradional ira rollover to roth count against your agi? I am trying to keep my agi down for Medicare reasons.

MAK70

No, rollovers do not affect your AGI unless the rollover goes to a Roth account (if that is what you mean by "non-traditional").

Joecool2Author

Thank you for your reply. What I meant by 'non-traditional' IRA is the money placed into a traditional IRA was not allowed a tax benefit due to income levels. That money (without earnings) was then moved to a Roth IRA where it was not taxable since the deposit into the traditional IRA account did not provide a tax benefit. That being the case should this transfer from traditional IRA to Roth IRA count against the AGI since it did not provide a tax benefit when placed into the traditional IRA, again no earnings were made on the investment so only the initial traditional IRA deposit was moved from one account to another the latter being the Roth.

DaveF1006

Yes, you will report this as a non-deductible on your return. This transfers to Form 8606 that tracks non-deductible contributions.

Go to the Deductions & Credits section.
Scroll down to Retirement & Investments.
Select Traditional and Roth IRA Contributions and click Start/Revisit.
When asked if you contributed to a Traditional IRA, select Yes.
Enter the amount you contributed.
If TurboTax asks whether you want to deduct the contribution, select No (since it's non-deductible).TurboTax will generate Form 8606, which tracks your basis in the IRA.