Actually you can contribute ROTH IRA INDIRECTLY.

Nondeductible traditional IRA -> ROTH IRA

You and your hubby can contribute 5K each year(10K for both or 12K if over 50) for nondeductible traditional IRA, then immediately convert to ROTH IRA. No extra tax paid. Why not to do it?

Starting from 2010, In order to boost the tax and revenue, government allows people convert rollover/traditional IRA to roth IRA, with immediate tax implication. Unfortunately, this also creates a huge loophole in favorite of higher income people.

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• 回复：Actually you can contribute ROTH IRA INDIRECTLY. -小闲- ♀ (45 bytes) () 01/18/2012 postreply 11:49:56

• yeah we did that for the past few years. will continue doing so. -melody2010- ♀ (0 bytes) () 01/18/2012 postreply 20:33:37

• we did it for 2010, 2011 and already did 2012 as well. -melody2010- ♀ (0 bytes) () 01/18/2012 postreply 20:36:07