2) Does AGI include bonuses, mortgage interest write off like taxes?The AGI includes bonuses. The AGI is calculated before deductions, so the AGI does not take into account any deductions. See IRS Publication 590: http://www.irs.gov/pub/irs-pdf/p590.pdf3) If I put money into my Roth IRA for year 2001 right now and exceed the AGI limit of $95,000 (hard to predict my income for this year it's very close to border) what happens?You have two choices:1. Recharacterize the Roth IRA contributions as Traditional IRA contributions. If you participate in a qualified plan (401(k) or 403(b)) at any time during the tax year, at your income level this would be a non-deductible Traditional IRA contribution.2. Withdraw the contributions and the corresponding earnings, if any. If there are earnings that are withdrawn, they will be taxed at ordinary income tax rates for the tax year that the Roth IRA contributions were originally made. (If in January 2001 you make your Roth IRA contributions and in March 2002 you discover you are over the Modified AGI limit and withdraw funds and corresponding earnings, the earnings would be taxed at ordinary income tax rates for tax year 2001. Other than that, by withdrawing funds by the deadline for contributions, it will be treated as if you had not made that contribution.)Your Roth IRA custodian should know how to deal with either option since a lot of people face similar issues.Again, IRS Publication 590 covers this.
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