Hello everyone.

My wife and I have been adding to a Roth IRA each year since it has been available.  2007 will be the first year that our AGI is too high to qualify.  I'm pondering if a non-deductible IRA would be the best strategy. 

Background:  we are overweight stocks and underweight bonds (on purpose for now).  We have a small amount of real estate and wanted to start owning non-traded Reits to diversify further.  The non-traded Reits have about a 7% dividend and are taxed at ordinary income minus about 15% return of capital.  Therefore, we were considering adding the non-traded Reits in a non-deductible IRA.  But in 2010, if we are somehow able to swap a non-deductible IRA into a Roth, we would prefer to do that.  We are 46 years old.  My wife has a simple IRA (3 years old), rollover IRA and 401K.   I have only a 401K.  Everything else is in a taxable account.

Is my wife allowed to move the rollover IRA and simple IRA into her current 401K?  Then in 2010, move the non-deductible IRA to a Roth??  If not, I think adding the non-traded Reits to a non-deductible IRA would be best but I wanted some other opinions.

 We keep our very aggressive mutual funds (such a CGM focus) in the Roth at this time. 

 Thanks, in advance, for your opinions.

 Greg