I'm thinking it may be a good idea to make a 2009 contribution to either a deductable or nondeductable traditional IRA and then immediately convert to a ROTH this week (assuming not elligible to make a ROTH contribution due to AGI). Is there any reason why that wouldn't be a good idea? We file MFJ and are not participating in a pension program. All earned income is 1099 -> sked C.
I guess if it was non-deductable the only impact would be any gain between making the contribution and converting would be taxable in
2010-2011 and if deductable then the tax on the deducted amount would essentially be deferred to 2010-2011?Any gotchas that come easily to mind?
scott s. ..