@dmertz wrote:
She can do the conversion, but it will be largely taxable with a substantial portion of her basis in nondeductible traditional IRA contributions remaining with her traditional IRAs (including SEP and SIMPLE IRAs; SEP and SIMPLE IRAs are types of traditional IRAs).
At the moment she only contributes a small amount to her 408p, approximately $6,000 for the year. Neither of us would be able to to do a deductible contribution since she has the 408p and I contribute to a pre-tax 457b so it would all be after tax money contributed to the Trad IRA.
From what I gather of your reply would $6,000, of the available $7,000, be taxed on her conversion amount? So essentially $6,000 taxed twice, once from paycheck and again from conversion. Am I reading and thinking correctly?
