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Hi all in Fool land,

I have a doubt concerning my Roth IRA contributions. My wife and I have Roth IRA accounts and we are planning of course to put in $2000 each into our Roth IRAs for year 2000.

I am planning to sell off an investment. I am not sure if the capital gains are included in AGI. If I am not mistaken, we must have an AGI of less than $150k to be able to conribute to our Roth IRAs.

1. Please can someone tell me if cap. gains are indeed included in AGI?

2. I have already made Roth IRA contribution in my wife's account. If our AGI goes about $150k what do we need to do?

Thanks,

Sam
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<< 1. Please can someone tell me if cap. gains are indeed included in AGI? >>

Yes.

<< 2. I have already made Roth IRA contribution in my wife's account. If our AGI goes about $150k what do we need to do? >>

Note that there is a phaseout of allowable Roth contributions between $150K and $160K on a joint return. If you have made excess Roth contributions in year 2000 you will have plenty of time in 2001 to withdraw the excess or recharacterize it as a traditional IRA contribution. You can read about both these remedies in the FAQ.

TMF ExRO
Phil Marti
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