<prompt> Human: I am in the process of rolling my wifes 401k from a previous job into a Roth at Vanguard. Talked to the Vanguard people last night and it seems that it will have to go from 401k Traditional IRA Roth IRA.Questions: When we go from Traditional Roth I assume it will be taxed as ordinary income, is that true? The Vanguard guy said that it would not count towards our 10k limit for IRA contributions since it was a conversion. That seemed counter-intuitive to me. Is he right? IF it does count towards our IRA limit, I believe it would go towards the 2012 contribution limit as long as we do it before we file, correct? If it goes towards the 2012 contribution limit, will it also be taxable ordinary income see question 1 on our 2012 taxes or our 2013?Thanks for any help.  <response>: I agree with elgrifo completely, but just to be explicit: When we go from Traditional Roth I assume it will be taxed as ordinary income, is that true?Yes, that is true. The Vanguard guy said that it would not count towards our 10k limit for IRA contributions since it was a conversion. That seemed counter-intuitive to me. Is he right?The Vanguard guy is right. Conversions do not count towards contributions. IF it does count towards our IRA limit, I believe it would go towards the 2012 contribution limit as long as we do it before we file, correct?Not applicable because it does not count towards the contribution limit. If it goes towards the 2012 contribution limit, will it also be taxable ordinary income see question 1 on our 2012 taxes or our 2013?The conversion will be taxed in the calendar year the conversion occurs.tl;dr: Listen to the Vanguard guy. 