Could spouse convert to Roth -Tax question
I have a husband who has a traditional IRA $200k
He wants to make a Non deductable IRA contrubution and immediatly convert it to a ROTH
However, if he does that, because of his IRA position there will be a prorated taxability on % of overall IRA account value
Therefore, His wife has NO traditional IRA, if she makes the Non deductable IRA contrubution, could she convert to the Roth and not be affected by husband IRA account and pro rated conversion value thats would be taxed ?
They file joint returns
Permalink Submitted by Alan - IRA critic on Tue, 2016-10-18 23:58
Form 8606 produces the taxable amount of a conversion, and each spouse has their own 8606 meaning that IRA balances of the spouses are never combined. She can convert tax free, whereas if the husband converted a non deductible contribution it would be nearly all taxable.
Permalink Submitted by BILL MARCO on Wed, 2016-10-19 18:20
Thank youThat was my understanding as well