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Good Evening All

I have a question. My AGI and my wife's this tax year for 2005 was $147,500. We both contribute the maximum to our 401K at work and also contribute the maximum allowable amount for each of our Roth IRA's. I am concerned that this year our salaries will increase into the maximum allowable AGI for Roth IRA's. Our AGI will either be in the 150,000 to 160,000 or over the 160,000.
If we continue to contribute to our Roth IRA's we can exceed our allowable amount for the year or may not be eligible at all for the Roth IRA if our AGI exceeds 160,000.
My question is do we stop contributing to our Roth IRA and set up Traditional IRA's now or do we wait until the end of the year and see where we stand with our AGI? If we wait until the end of the year and contribute the maximum allowable amount, $4000, to our Roth and then find out that we are not eligible for the Roth this year because our AGI exceeded 160,000 can we roll those over into a traditional IRA without incurring a penalty?

I hope this makes sense. Thank you in advance

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