The tax deadline has no bearing on whether you want to convert the non-deductible Traditional IRA to a Roth IRA.
For 2024, you have already made the Traditional IRA contribution, it is just a non-deductible one. You need to be sure to report that in your 2024 tax return so that Form 8606 will be included and the basis of the Traditional IRA will be reported.
Then, if you do decide to convert the Traditional IRA to a Roth IRA the basis will be part of the calculation to determine whether the conversion will be taxable or not. If your wife has other Traditional IRAs with pre-tax money, then those funds will be part of the calculation to determine whether any conversion is taxable or not.
If you decide to convert the Traditional IRA to a Roth IRA, you can convert any amount you wish. There is no limit for conversions because they do not count as a contribution to the Roth IRA.
If a conversion is done, you will receive a Form 1099-R reporting the distribution from the Traditional IRA. When this form is entered into your tax return you will indicate that the funds were converted to a Roth IRA and the amount that may be taxable will be calculated. Conversions are reported on the tax return for the year that the conversion takes place. They are not designated to be for a particular tax year like IRA contributions are.
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