Sorry guys--I should have been clearer in the OP. I have converted my traditional IRA to a Roth IRA. In doing so, I did create a tax liability for myself--i.e., to the extent I didn't have basis in the assets in the IRA (whether via non-deductible IRA contribution or otherwise), I had to pay tax as though the assets were ordinary income.
However, by accelerating the tax burden, I paid the tax now on my IRA which means that all withdrawals once I reach 62.5 (or 65, I don't recall which) will be tax free instead of taxed as ordinary income.
The downside is that there's tax liability now, but the upside is that all of that money grows (and can be withdrawn at retirement) tax free.
I ran the numbers in Excel and it made a lot of sense to me.
I don't know if this would make sense for everybody, but perhaps a conversation worth having with your financial adviser.
This year and I believe 2011 are the only years where there's no limitation on conversion of traditional IRAs to Roth IRAs.
Hope this is helpful.