A. Yes, you can do this in two steps:
First, even if you don't qualify for tax-deductible contributions, you can still have an IRA.
If you're covered by a retirement savings plan at work—like a 401(k) or 403(b)—and your 2018 or 2019 modified adjusted gross income (MAGI) exceeds applicable income limits, your contribution to a traditional IRA might not be tax-deductible. However, getting a current-year tax deduction isn't the only benefit of having an IRA. Nondeductible IRA contributions still offer the potential for your money and earnings to grow tax-free until the time of withdrawal.
Second, you can convert those nondeductible contributions to a Roth IRA.Roth IRAs can be a great way to achieve tax diversification in retirement. Distributions of contributions are available any time without tax or penalty, all qualified withdrawals are tax-free, and you don't have to start taking required minimum distributions at age 70½.5 But some taxpayers make the mistake of thinking that a Roth IRA isn't available to them if they exceed the income limits.6 In reality, you can still establish a Roth IRA by converting a traditional IRA, regardless of your income level.
Our next blogpost will discuss the conversion of a traditional IRA to Roth IRA