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I went ahead and hastily converted about $12K in a regular IRA to ROTH a month ago. I did this because I was fairly certain my AGI for 1998 would not exceed $100K and the earlier I did so, the lower the amount converted (I hope to have some gains this year using the RP4 method!) and less taxes owed!
Now I find that due to unexpected raises and bonuses, I will certainly exceed even $110K (I know, everyone should have problems like these :-)). Now what happens? Since my Roth conversion is illegal, do I have to convert it back and will there be any penalties? Should I convert it back right away or wait till the EOY figures come in and I HAVE in fact exceeded the amount? Thanks for your help.
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