If I have $1 million in traditional IRA balances and my non-working spouse has also been accumulating spousal traditional IRA balances with contributions every year and now has $200,000 in balances. We make too much to have a Roth IRA and we did not do an immediate conversion to Roth as we should have done. $75k is contributions and $125k is earnings/appreciation. She wants to convert all her traditional IRA balance to a Roth IRA - (and we are married filing jointly). Do we need to aggregate both her IRA and my IRA balances ($1.2 million combined) in considering the conversion? This would be a pro- rata amount and not get the full benefit we want, OR do we just consider her $200,000 IRA as the total amount of IRAs under her name when doing the Roth conversion?
