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wilibear writes (in part):

I make a contribution of $2000 to my Roth for tax year 2000 in Jan of 2000. I have an unexpectedly good year, and exceed the income limit, rendering all of this contribution an excess contribution. I want to avoid the penalty by withdrawing it before April 16, 2001.

I reply:

Have you considered "recharacterizing" the Roth IRA contribution to a traditional IRA? That way, if your income later drops below the conversion limit, or if the conversion limit later rises above your income, you'll be able to get the money into a Roth via a "conversion." --Bob
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