R/O stands for “Rollover” IRA. This is a almost certainly a pre tax traditional IRA rolled over from a prior employer plan. Anyone can convert all or part of their traditional IRAs to a Roth IRA, but you should first determine whether this is wise or not and that is a complex decision. Conversions when you already in retirement can result in more of your SS being taxed in the conversion year but can reduce RMDs in later years that could reduce SS taxes at that time.

If your business has a net loss but still has a profit motive, a modest conversion could be used to replace that loss, but still might result in more SS taxation. You have plenty of time to do a 2010 conversion, and in the meantime should have a tax pro advise how much you should convert, if any.

Note that your husband will have to start taking RMDs in the year he reached 70.5 from his traditional IRA, but would not have to from a Roth IRA. These RMDs start out at less than 4% of his prior year end traditional IRA balance, so they are generally not large enough to cause major tax problems for those with limited retirement accounts and modest other assets. If he must take an RMD for 2010, that RMD needs to be distributed prior to any conversion, and the RMD itself cannot be converted to a Roth IRA.

You cannot make regular Roth IRA contributions without earned income including net self employment income, but a Roth conversion can be done without any earned income. You should be able to pay any extra taxes due to a Roth conversion from funds other than IRA funds.

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