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URL:  http://boards.fool.com/2-if-my-agi-is-too-high-does-it-still-make-10980255.aspx

Subject:  Re: IRA Qs Date:  6/23/1999  1:28 PM
Author:  moseykitty Number:  11479 of 75390


2. If my AGI is too high, does it still make sense to open a conventional IRA?

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Your situation seems unique in that your AGI is temporarily inflated. In this situation, you could make a non-deductable IRA contribution this year and then convert it to a Roth next year. The basis calculation for the conversion includes the balances of all IRAs, so depending on your holdings you may not be able to capture the entire $2K. If you're married, it'll be tougher because the $100K AGI cap for Roth conversions is the same for single or married.

I am over the limits for a Roth and still make the $2K non-deductable contribution. It's a tough call every year. Buying and holding equity index funds seems like a good alternative strategy.

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