Another option - available this year and next unless (until) Congress make a change. Make the non-deductible IRA and then do an immediate conversion to a Roth. This works best if you don't have any other IRA accounts. It essentially gets around the income limit for Roth contributions.
------------------
This is exactly what I have been doing for the past 3 years due to income limits. (I guess it means I'm making too much money - that's a bad thing?). Since all my funds beside the NDIRA were in Roth's I had no issues other than the limits. 2 weeks ago I converted all my NDIRA to my ROTH accounts and have continued my EFT funding of my NDIRA. As I go down the road I will occasionally convert my NDIRA into my ROTH accounts until dear Uncle Sam decides I can't anymore.

It's a dance, but it is the only way to fund the Roth's at the moment.

MZ4

Does this mean that I could make both the 2009 and 2010 contribution to the Trad IRA and convert the account with both contributions now (before 4/15/10)? Is there a deadline for the conversion? Any reason why NOT to do that?

- zol