I have a client who is 68 years, is married, has a current 401(k)- $250K, a rollover IRA annuity – $450K. His income is $170K and his spouses income in zero.

He would like to max his 401(k) contribution, and try to do a deductible IRA contribution for both himself and his wife and then do a Roth Conversion. My understanding is that he cannot make a deductible IRA contribution, but he could do a non-deductible contribution. His wife could do a deductible contribution in a spousal IRA and do a conversion. They both have existing Roth IRA.

Is my understanding correct that he could do the non-deductible IRA and convert and that his wife could do the deductible IRA and convert? Also, does thee pro rata rule come into play in any of this?

Please advise.