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I am going to make my 2001 contributions to my Roth IRA now as I have the money. However, I am curious as to what would happen if I were to exceed the AGI limit for 2001. I don't expect this to happen but nothing is impossible. Would I be able to "unwind the contribution and any earnings" as a result of that contrtibution?

Yes. You have various options if that happens, and you'll have plenty of time in 2002 to take them.

Is this the same for my child's education IRA contributions?

No, it's not. Unlike "real" IRAs, you can't change anything about an Ed IRA after December 31. However, there's a great loophole for you to take advantage of. The contributor to an Ed IRA doesn't have to have any income. Give the beneficiary the money and have him make the contribution, assuming it's a child with little or no income. That way you won't run into a problem with too much income to contribute and no time to do anything about it.

Phil Marti
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