Get your taxes done using TurboTax

I don't see any problem with either Method 1 or 2.  As long as your wife is eligible for a Roth IRA, how and where the money came from to fund the Roth IRA is irrelevant.  

 

I'm curious as to why you and your wife are opening a Roth IRA since both of you are here on a temporary visa?  Roth contributions are not tax deductible.  While it's true that withdrawals after 5 years could be tax free.  But will you and your wife be in the U.S. by the time you can withdraw the funds tax free (reaching age 59½)?  If you will be back to your home country by then, what is the benefit of contributing to a Roth IRA?  Your home country may tax you for the withdrawal.  No need to answer my question.  Just something for you to ponder.  Good luck!