My wife and I exceed the income limits to contribute to a Roth IRA or to get a tax deduction for a traditional IRA, but in the 2010 there are no income limits for converting a traditional IRA to a Roth IRA. She has $8K in a traditional IRA. Can we contribute $5K before year- end to a non-deductible traditional IRA for my wife and another $5K next year and then convert the total of $18K in the deductible and non- deductible traditional IRAs to a Roth IRA? We would owe income tax on the $8K converted from the existing traditional deductible IRA, but earnings on the $18K in the future would be tax-free.
The 2010 laws for Roth IRA conversions are discussed at
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