Why Not to Invest In Non-Deductible IRAs

People who are too wealthy to qualify for either a deductible individual retirement account (IRA) or a Roth IRA have the option of contributing to a non-deductible IRA. Assuming they meet the basic criteria to contribute to an IRA,1 they can deposit up to $4,000 a year but are not entitled to claim an income tax deduction. Roughly one-fourth of all contributions to traditional IRAs are non-deductible.2

Christopher R. Hoyt | Sep 01, 2005

Resources

People who are too wealthy to qualify for either a deductible individual retirement account (IRA) or a Roth IRA have the option of contributing to a non-deductible IRA. Assuming they meet the basic criteria to contribute to an IRA,¹ they can deposit up to $4,000 a year but are not entitled to claim an income tax deduction. Roughly one-fourth of all contributions to traditional IRAs are non-deductible.²

All access premium subscription

Please Log in if you are currently a Trusts & Estates subscriber.

If you are interested in becoming a subscriber with unlimited article access, please select Subscription Options below.

Questions about your account or how to access content?

Contact: [email protected]

TAGS: Retirement Planning Investment Archive

Hide comments

Comments

Plain text