I very recently opened a traditional IRA at Vanguard and have been backfilling it for 2015. I had thought I would be able to deduct the full contribution, but tonight I realized that I'd read the deductible contribution income limits wrong (or more accurately, I was just looking at the wrong charts). I can't actually deduct any of my tIRA contributions.
I am eligible to contribute the full amount to a Roth IRA for 2015. My understanding is that it's preferable to have the money in an Roth IRA instead of a non-deductible tIRA, since the earnings won't be taxed on withdrawal. I've read about the backdoor Roth IRA conversion. It's not really applicable in this case because I don't hit the income limits for the Roth IRA, but I'm assuming the same process can be used to move the funds I put in the tIRA to a Roth IRA. Is that right? Since the money is non-deductible in either case, are there any potential issues in moving it from the tIRA to a Roth?
