My son and daughterinlaw earn more than the maximum allowed to contribute to a Roth IRA. They both have 401Ks at work. Can they contribute to Nondeductible IRAs and immediately convert the IRAs to Roth IRAs?Yes, but if either of them has other IRAs (including rollover IRAs) that have pre-tax contributions or gains in them, there will be additional taxes, since the conversion will be pro-rated across all IRA accounts for each individual.If so, can they make a 2010 contribution by April 15, 2011?Contributions for 2010 can be made up until April 18, 2011. However, conversions are on a calendar year basis, so any conversion done in 2011 will be taxed in 2011, not 2010.AJ
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