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2) Wow, that was a very good to find out. This year my salary got passed the limit for Roth. But I am still eligible for 2012. Will see what to do this year.

You may have misstated this and not really meant 'salary' - but your eligibility for a Roth is based on your 'MAGI' or 'Modified Adjusted Gross Income', not your 'salary'. You can figure your MAGI using worksheet 1-1 of IRS Pub 590 In general, it starts with your AGI from your 1040 (which already removes pre-tax 401(k) contributions and pre-tax insurance premiums from your salary), and then makes some further adjusments.

So, even with a salary that starts out over the limit, if you are making pre-tax contributions to your 401(k), you can make yourself eligible for a Roth.

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