TIRA contribution issue
For 2010 my wife wants to make a nondeductible TIRA contribution of $6k and then immediately convert it to a Roth. Our combined income is too large to permit her to open a Roth directly, so she wants to avail herself of the nondeductible-TIRA-then-immediately-convert-to-RIRA gambit. The problem is that she is to old to contribute to a TIRA. That seems to block her from the gambit to get to a Roth. Am I missing something? Or is she simply out of luck and cannot get to a Roth?
Permalink Submitted by Alan Spross on Thu, 2011-04-14 22:06
Probably out of luck. If she reaches 70.5 by the end of the year that the proposed TIRA contribution is for, she cannot make any TIRA contribution or receive a spousal contribution from you either. The only way to increase her Roth holding is to convert from a current TIRA (if she has one) after taking out her RMD.