Can someone in 2010 or later who does not have a traditional IRA and is ineligible to contribute to a Roth IRA make a single contribution to a traditional IRA and immediately convert it to a Roth?
The way we read the rules, this can be done. (Remember, an individual cannot just establish a single aftertax IRA and then cherry-pick the tax consequences if other traditional IRAs exist. Please see Q&A 9.) This transaction, though, would be cumbersome. The IRA account would need to be opened and funded. Then, Roth conversion paperwork would need to be completed and the funds transferred over. Hopefully, this issue will be addressed in future IRS guidance.