Can I undo a Roth IRA contribution if AGI turns out to exceed the limi

[Guest bella]

We anticipate making some money from stock market this year but won't know how much until the end of the year. Just calculating the salaries, we won't exceed the $150K limit but if we do make as much as we did from stock market in 1999, we will have an AGI between $150K and $160K. Does that mean we shouldn't contribute until we need what our real AGI is until the end of the year? Or can I contribute the $2K now and withdraw the extra contribution if our AGI does exceed $150K by the end of the year? Will there be penalty doing so? Please advise. Thanks.

[BPickerCPA]

You can either withdraw any excess, or recharacterize it so that it will be considered a contribution to a traditional IRA.