If you guys don't qualify for a Roth anymore, it means you're starting to make some serious money. At least as far as the government sees it.

Here is something to think about. Why not just open a traditional IRA and fund it. Don't worry about converting. Why? Its not putting all your eggs in one basket. If everything you have is in a Roth, it will all be treated the same tax wise. Thirty years from now, I'm sure the tax laws will be different. Not just income taxes, but say a federal sales tax is added or some value added tax or who knows what. So when you go to withdraw that money from the Roth, you've either got the best tax break possible or something really bad. Bottom line, you have no control, its your only option.

If you have a traditional plus your Roth, you have a choice of where to pull your money out of. One or the other or a little from each. Thus increasing your chances of minimizing the tax hit. You won't have the best outcome but you won't have the worst either.

JLC