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Limitation on Conversion

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Limitation on conversion
Applies mainly to convertible securities. Possible delay in convertibility. More frequently, the right to convert may be terminable prior to a redemption date, preventing the holder from receiving a final coupon or dividend. See: Accrued interest.

Limitation on Conversion
In convertible securities, a delay or restriction on the ability to exercise the conversion option. For example, the holder of a convertible bond may have a limitation on conversion preventing him/her from changing that bond into the underlying stock on certain dates around the time of dividend payments.


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For tax years beginning after 2009, the new law eliminates this $100,000 modified AGI limitation on conversions of regular IRAs to Roth IRAs and also allows married individuals filing separately to make such conversions.
 
 
 
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