Converting non deductible IRA, spouse had deductible IRA
Wife has no current IRA’s. If she funds non deductible IRA for 2009 (pre 4/15/10) & 2010 will her husband’s existing deductible IRA make her immediate conversion to a Roth IRA a taxable event?
Thanks!
Permalink Submitted by Alan Spross on Tue, 2010-03-16 20:08
No. Each spouse’s IRA is totally separate from the other spouse’s. Wife can convert tax free. If there is earned income, even from her spouse for 2010, she can also fund her 2010 non deductible contribution and then convert both tax free. These non deductible contributions as well as her conversion are reported on Form 8606. The 8606 has room for only one SSN. She would file a 2009 8606 for the 2009 contribution and for 2010 she would file an 8606 that would report the 2010 contribution AND the conversion on a different part of that same form.