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lslim writes:

My AGI will fall within the phase out range this year. Is it better to take an estimated guess and contribute partially to a Roth IRA and the remainder to a traditional IRA and adjust in Jan '00 (before the April 15th deadline)? Or, would you recommend skipping the administrative hassle and contributing all to a traditional IRA?

I reply:

I was in that situation last year, and probably will be this year as well. I simply made my contributions to my traditional IRA, and when I knew my AGI, I recharacterized as much as possible to a Roth contribution. I use Vanguard, and the administrative hassle was minimal -- one form to open the Roth IRA, and another to recharacterize the contributions (along with their associated earnings, which Vanguard calculated). --Bob
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