Yes, since your balance was $0 at the end of 2022 you will be able to do “clean backdoor Roths” for 2023. Yes, if you right away convert your nondeductible traditional IRA contributions and have no earnings then the conversions will be nontaxable.
For your wife, she will have with each distribution or conversion a taxable and nontaxable part until the basis is used up because of the pro-rata rule.
Is your wife still working and has a retirement plan at work? If yes she could ask if she can do a reverse rollover. A reverse rollover is where you rollover the IRA money to a company plan, like a 401(k). Only pre-tax funds can be rolled from an IRA to a company plan. Therefore, you would isolate the basis and could start the Backdoor Roth procedure fresh. But it only works if your employer allows it, not all plans do.
@dhuynh44
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