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In '98 I started a roth and elected to pay the tax over four years. At the time I was single and under the AGI. In 99 I got married and the combined AGI is over the Roth limit. Can I continue to pay the second year's pro rated tax or are there consequences to now exceeding the ROTH AGI limit?

Not only "can" you continue paying taxes on the pro rated income, but I think the IRS would be upset if you did not. As long as you were eligible to rollover in 1998 (I am assuming from your question that you did do a rollover), I don't think it matters that you would not be eligible to do a rollover (or even contribute to a Roth) during one of the years in which you are including a portion of the income from the rollover.

You probably know this, but remember that the AGI limit for contributing to a Roth is higher than the AGI limit for doing a rollover, and each of these numbers is higher for married persons filing a joint return.

"Man is not like other animals in the ways that are really significant: animals have instincts, we have taxes." -- Erving Goffman
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