Backdoor Roths: "abuse" risks? + conversion limits?

[eLiu]

So I was doing some reading and learned about the tax 'loophole' that allows anyone to contribute to a Roth, regardless of income. Apparently this trick has been in effect since 2010, when congress eliminated the income limit on roth conversions (used to be that you could only convert if your income was <$100k). So now in principle you can open a traditional IRA, and immediately convert it to Roth. Sources:
http://thefinancebuff.com/the-backdoor-roth-ira-a-complete-how-to.html
http://en.wikipedia.org/wiki/Roth_I...ion_as_a_workaround_to_Roth_IRA_income_limits
etc

Questions: (Below, let's assume that I'm above the income limits for Roth)
1) Both sources indicate that I probably don't want to do the conversion immediately, since the IRS can declare it a "single step", meaning that in their eyes I just made an illegal roth contribution. But how long should I wait?

There doesn't appear to be a definite, safe answer to this one. So I'm more looking for experiences from anyone who has used this trick or has other relevant experiences to share.

2) Say I had some other accounts that I wanted to convert to Roth IRA--like pretend I had $50k in a traditional IRA. I'm almost certain that I could convert as little or as much of that money as I wanted (might have to pay a lot of taxes), but this wouldn't be limited by like the $5k roth contribution limit. But, does such a conversion limit my ability to contribute to a Roth in the same year? Maybe more clear to ask it this way: "Does a conversion count as a contribution?" I'm pretty sure the answer is "No" but I haven't been able to find specific tax language indicating one way or the other.

edit: removed 3rd question b/c it was stupid, lol.

Thanks!

 

[Thump553]

If you earn too much to qualify for an IRA you certainly earn enough to hire a competent professional to advise you versus trolling for free advice from some random idiot on the internet.

 

[eLiu]

If you earn too much to qualify for an IRA you certainly earn enough to hire a competent professional to advise you versus trolling for free advice from some random idiot on the internet.

So if I wanted to build a computer, I should talk to Dell? If I need to change my oil, I should visit a mechanic? If I want to design a workout, I should hire a personal trainer?

What's wrong w/wanting to understand this stuff for myself and/or do it myself? I know there are several tax experts that hang out here and don't see the harm in asking.

Beyond that, even if I got a tax professional to handle all this stuff for me, I'd still want to understand what's going on and learn about other people's experiences.

 

[Jeff7]

Just throwing in another information source here.

 

[eLiu]

Just throwing in another information source here.

Doh, good call. I totally forgot to check their wiki even after searching their forums! lol fail. Interesting that the bogleheads wiki doesn't even mention the "single step" policy I saw on [normal] wiki.