The $7,000 contribution limit is contributing new money to an IRA and has nothing to do with a conversion whatsoever. You can convert any amount at any time.
There is a separate 5 year rule for each conversion.
Whether you can convert stock or not (in-kind conversion) depends in the rules of your financial institution. The taxable amount would be the market value at time of conversin.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
