DH and I have maxed out our tax-deferred savings options. Our income is too high for a Roth IRA.
We've avoided putting extra money into an IRA because there was no tax advantage. However, I am now understanding that we can open IRAs, put 5.5 k each in them and immediately convert them to Roth's. We will have already paid income tax on the money we use to open the IRA - will we be taxed again? At what rate?
Can we do this yearly?
Also, if it matter, he has a IRA (smallish, I think), and I have an old Roth IRA with about 5k in it.