Comments on: What is Modified Adjusted Gross Income (MAGI)? http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/ personal finance tips, tricks, and commentary Tue, 14 Feb 2012 00:06:17 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: David Klokis http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-209012 David Klokis Wed, 09 Feb 2011 01:47:30 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-209012 Does capital loses bring down your MAGI, and does realestate taxes reduce the MAGI also? Does capital loses bring down your MAGI, and does realestate taxes reduce the MAGI also?

]]> By: A. M. Catanzaro http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-189102 A. M. Catanzaro Fri, 05 Nov 2010 17:11:56 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-189102 According to an article published Jan. 27, 2010 from Kiplinger: http://www.kiplinger.com/features/archives/krr-a-roth-conversion-boosts-medicare-costs.html Roth Conversions ARE counted against MAGI. Is the information in the article you posted correct or is it outdated? According to an article published Jan. 27, 2010 from Kiplinger: http://www.kiplinger.com/featu.....costs.html
Roth Conversions ARE counted against MAGI.

Is the information in the article you posted correct or is it outdated?

]]> By: Dean Smith http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-144251 Dean Smith Wed, 10 Mar 2010 22:40:29 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-144251 Download html Pub 590 from IRS.gov; Chapter 2 - Roth IRAs. When I try to download the pdf Pub 590, my computer freezes. Any unconverted IRA distribution adds to MAGI, along with other tax preferences listed in 590. Download html Pub 590 from IRS.gov; Chapter 2 – Roth IRAs. When I try to download the pdf Pub 590, my computer freezes. Any unconverted IRA distribution adds to MAGI, along with other tax preferences listed in 590.

]]> By: roger http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-144151 roger Wed, 10 Mar 2010 20:35:46 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-144151 Hi, in general MAGI is higher amount than AGI?. The IRA distributions is counted or discounted for MAGI purpose?. Thanks Roger Hi, in general MAGI is higher amount than AGI?.
The IRA distributions is counted or discounted for MAGI purpose?.
Thanks
Roger

]]> By: Dean Smith http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-143611 Dean Smith Mon, 08 Mar 2010 21:32:30 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-143611 For Alan: not according to IRS pub 590 and Form 8815 For Mark: If all of the pension money is rolled-over into Roth, no. Any not rolled over would be counted in MAGI. In 2009, you could not convert (roll-over) any approved pension plan money into Roth if MAGI was over 100K. No such restriction in 2010. For Alan: not according to IRS pub 590 and Form 8815

For Mark: If all of the pension money is rolled-over into Roth, no. Any not rolled over would be counted in MAGI. In 2009, you could not convert (roll-over) any approved pension plan money into Roth if MAGI was over 100K. No such restriction in 2010.

]]> By: Mark Feddersen http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-143541 Mark Feddersen Mon, 08 Mar 2010 16:36:12 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-143541 I want to know if using my public employer voluntary distribution pension money for a down payment would count against MAGI? I want to know if using my public employer voluntary distribution pension money for a down payment would count against MAGI?

]]> By: Alan http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-141661 Alan Sun, 28 Feb 2010 16:40:15 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-141661 Is tax exempt income (i.e. from tax free municipal bonds) added back in to calculate MAGI? Is tax exempt income (i.e. from tax free municipal bonds) added back in to calculate MAGI?

]]> By: Dean Smith http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-139596 Dean Smith Wed, 03 Feb 2010 06:17:09 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-139596 There was no mandatory minimum required IRA distributions in 2009. However, I did take some money out. I also did a Roth conversion during 2009. I know the conversion amount is not included in my MAGI, but what about the "voluntary" distributions taken. I believe they are excluded from the MAGI. Is this correct? If not, I will have to re characterize the conversion. There was no mandatory minimum required IRA distributions in 2009. However, I did take some money out. I also did a Roth conversion during 2009. I know the conversion amount is not included in my MAGI, but what about the “voluntary” distributions taken. I believe they are excluded from the MAGI. Is this correct? If not, I will have to re characterize the conversion.

]]> By: ann http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-136463 ann Wed, 18 Nov 2009 03:48:02 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-136463 If I made a withdrawal from my 401K to purchase a home (first time buyer) would that amount qualify as MAGI? If I made a withdrawal from my 401K to purchase a home (first time buyer) would that amount qualify as MAGI?

]]> By: Tess http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-135905 Tess Mon, 26 Oct 2009 20:22:01 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-135905 you mentioned alimony payments but what about child suport. I live in Kansas and my husband pays 50% of his gross to his exwife. can we deduct what he pays? you mentioned alimony payments but what about child suport. I live in Kansas and my husband pays 50% of his gross to his exwife. can we deduct what he pays?

]]> By: Mike Reed http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-114730 Mike Reed Fri, 25 Jan 2008 20:48:31 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-114730 New subscriber - where would I find your response to questions 5, 6 & 7 from Nov 10,2006 article about MAGI? Great articles! Thanks, Mike New subscriber – where would I find your response to questions 5, 6 & 7 from Nov 10,2006 article about MAGI?

Great articles!
Thanks,
Mike

]]> By: Chris http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-114465 Chris Wed, 16 Jan 2008 16:31:20 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-114465 Do you know how Social Security Disability is handled when computing MAGI? Do you know how Social Security Disability is handled when computing MAGI?

]]> By: Pearl http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-78507 Pearl Thu, 19 Jul 2007 01:58:47 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-78507 My broker tells me that capital gains are deducted from AGI to get MAGI for $100,000 limit for IRA to Roth conversion. does not sound right to me. It it? My broker tells me that capital gains are deducted from AGI to get MAGI for $100,000 limit for IRA to Roth conversion. does not sound right to me. It it?

]]> By: Rob http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-68925 Rob Fri, 02 Mar 2007 20:52:46 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-68925 Re: MAGI for IRA purpose, if I have a rental loss on line 17 of 1040 and the loss is included in AGI line 37, do I take the loss out of AGI to derive the MAGI? The MAGI for passive activity loss limitation (Form 8582) excludes the rental loss. Is the MAGI calculation for IRA different from the MAGI calculation for passive acitivy loss limitation? Re: MAGI for IRA purpose, if I have a rental loss on line 17 of 1040 and the loss is included in AGI line 37, do I take the loss out of AGI to derive the MAGI? The MAGI for passive activity loss limitation (Form 8582) excludes the rental loss. Is the MAGI calculation for IRA different from the MAGI calculation for passive acitivy loss limitation?

]]> By: nickel http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-35130 nickel Fri, 10 Nov 2006 21:45:45 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-35130 Mike: Correct. That's what I said. Those things get taken out for AGI, and traditional IRA goes back in for MAGI. So yes, an employer plan can be used to reduce MAGI, but a trad/SEP IRA cannot. Mike: Correct. That’s what I said. Those things get taken out for AGI, and traditional IRA goes back in for MAGI. So yes, an employer plan can be used to reduce MAGI, but a trad/SEP IRA cannot.

]]> By: nickel http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-35129 nickel Fri, 10 Nov 2006 21:44:34 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-35129 J: Yes, less than $100k whether or not you're married. Details in a forthcoming post. J: Yes, less than $100k whether or not you’re married. Details in a forthcoming post.

]]> By: MIke http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-35020 MIke Fri, 10 Nov 2006 18:11:15 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-35020 Don't think you're quite right on how it's computed. Did a little hunting on the IRS website for the definition of MAGI for Roth IRA contribution eligibility. http://www.irs.gov/publications/p17/ch17.html#d0e44219 According to it, Traditional IRA contributions are added back in, but it doesn't mention 401K contributions. So increasing your 401K contributions could increase your eligibility. Don’t think you’re quite right on how it’s computed. Did a little hunting on the IRS website for the definition of MAGI for Roth IRA contribution eligibility.
http://www.irs.gov/publication.....l#d0e44219

According to it, Traditional IRA contributions are added back in, but it doesn’t mention 401K contributions. So increasing your 401K contributions could increase your eligibility.

]]> By: J http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/comment-page-1/#comment-34946 J Fri, 10 Nov 2006 14:19:16 +0000 http://www.fivecentnickel.com/2006/11/10/what-is-modified-adjusted-gross-income-agi/#comment-34946 To convert from a rollover to a Roth you have to be under MAGI of $100k right? To convert from a rollover to a Roth you have to be under MAGI of $100k right?

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