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I participate in a defined contribution retirement plan and a 401(k) at work. Because of certain moving expenses my employer has paid on my behalf, my 1999 AGI will likely be too high to allow me to open a Roth IRA or deduct any contribution to a conventional IRA.

Given the above, I have a few questions:

1. If I were to open a Roth IRA and then learn at tax time that my AGI was too high, what would be the effect on my taxes and my IRA?

My assumption is, but I can't find the answer, that I would have to (be able to) recharcterize the IRA as a conventional IRA.

2. If my AGI is too high, does it still make sense to open a conventional IRA?

I guess the benefit is that I wouldn't be taxed on gains when I traded through the IRA and the value of the benefit depends on how often I traded and how large the gains or losses were when I traded.

3. Changing to Education IRAs, if my AGI is too high, can I make a gift of $500 to each child and have them each establish an Education IRA?

4. Finally, what don't I know that I should know about tax-effcient investing in my situation? (A small question, I know.)

To all who respond, thanks for your help, knowledge and insight.
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