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How does the $95,000 income limit for Roth IRA contributions get calculated?

My specific problem is that my gross income may be over 95K this year (depending on bonuses and raises). However, I am making a 10K contribution to my 401K at work. Does this 10K get subracted from my Roth IRA income limit?

If this is going to be a problem, I already made my 2005 Roth contriubtion of 4K. What happens - does my bank make me put the 4K into a traditional IRA?

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