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Two questions on some confusing areas of the new Roth IRA:
1.In 1998 I plan on converting my IRA to a Roth IRA. My current salary is just under the limit of $100,000 of AGI to allow a conversion. I don't know if I will make over the limit in 1998. What happens if I convert in early 1998 and I end up making over the $100,000 limit for 1998? I downloaded the new tax form for the Roth IRA (IRS From 5305-RA), and all I could find was that the instructions say that I could be subject to a 6 percent tax on excess contributions and references IRS publication 590. Publication 590 on the IRS web site does not yet address Roth IRA's. This does not seem like much of a penalty. Or is this a 6% tax each year on any excess contributions? Is there more to this restriction on conversion?

2. Also included in the new tax form is the statement that "no contributions other than IRA conversion contributions made during the same year will be accepted" (from Article I (2.)) Does this mean I can't contribute in 1998 after I convert? Should I therefore make a non-deductible contribution to my current IRA before I convert? Or will I need to set up two accounts, one conversion and one contribution? (Seems like more unnecessary recordkeeping).
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