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I have a variable income, so I don't know whether I will be eligible to add to my Roth IRA in 2000, but don't want to wait until year-end to get my $2000 into the market. Should I (1) open a traditional IRA (non-deductible for me anyway), then convert it later into my Roth if it turns out that I can (and if I do, can I take the earnings on the $2000 into the Roth also, and do I have to pay taxes on them even though they would have accumulated tax-free in either form of IRA?), or (2) put the $2000 into my Roth, then convert that contribution to a new traditional IRA at year-end if it turns out that I am not eligible for the Roth (and ditto the tax question on earnings accumulated)? I have been researching the pros and cons of each, but ultimately am just stumped. Why do the Roth IRA rules have to be so confusing? (rhetorical question) Thanks in advance for any guidance any of you can offer!
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