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Subject:  Re: Non-deduct Traditional IRA Date:  2/10/2004  6:50 PM
Author:  2old4bs Number:  39126 of 88775


I agree with you on holding bonds, REITs, etc. in tax deferred accounts. However, the initial question,

If you don't qualify for a Roth IRA, is there a good reason to use a non-deductible traditional IRA over a taxable investment account?

is about NON-deductible IRA contributions, which does away with some of the advantages of an IRA because you are paying with 'after-tax' dollars. This would then leave the only advantage of the IRA option to defer taxes on ordinary income, which only makes sense if you intend to be in a lower tax bracket during retirement.


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