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[[ Here's the situation: my husband & I make too much money for the Roth IRA
(tough problem to have ;-), and we're already maxing out our 401k's. We would
like to start a couple of non-deductible IRA's. Of course I realize that our $2000
each per year contribution would be after tax.]]

Right...but remember that the AGI limitations are different for the IRA deduction issues as opposed to the Roth contribution issues. So make sure that you are looking at the correct rates. I discuss this in much more detail in my post on this very issue in the Taxes FAQ area. You might want to check it out.

Hope this clears it up for you...
TMF Taxes

Thanks for the explanation on the withdrawals and all the "basis" stuff. I'm now clear on that part.

I am confused, however, by your comment on the deductibility. If our AGI is too high for a Roth IRA (above $160k), then wouldn't that also mean it is too high for a regular IRA to be deductible? I just looked at the IRA Deductions Limitation FAQ -- do I understand correctly that the 1999 AGI limit is $61k for an IRA contribution to be deductible?

Thanks for your help.


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