First Republic Private Wealth Management includes First Republic Trust Company; First Republic Trust Company of Delaware LLC; First Republic Investment Management, Inc., an SEC-Registered Investment Advisor; and First Republic Securities Company, LLC, Member FINRA/ SIPC.
Contributions to a traditional IRA reduce your AGI (Adjusted Gross Income) and lower your taxes. Your contribution must be made by April 15 following the tax year to be deductable. Contributions to a Roth IRA do NOT reduce AGI and do not lower your current taxes.
Conversion Doesn't Affect MAGI. Roth IRAs limit your ability to contribute if your modified adjusted gross income is too high. However, even though your Roth IRA conversion counts as taxable income, it isnât included in your modified adjusted gross income.s a result, no matter how much you convert during the year, you can still make a contribution to either a traditional IRA or the Roth IRA that you rolled money into as if the conversion didnât happen. For example, if you roll over $3,000, you donât have to lower your annual contribution limit by $3,000.