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URL:  http://boards.fool.com/mark-but-tax-inefficient-investments-would-make-21790079.aspx

Subject:  Re: nondeductible IRA - Useless? Date:  12/21/2004  5:27 PM
Author:  wcfenton Number:  43670 of 76082

Mark...

But tax-inefficient investments would make sense in a Traditional IRA funded with non-deductible contributions, like you mentioned. That would include bonds and bond funds (other than municipal bonds), REITs.
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Why wouldn't tax-inefficient investments such as bonds, bond funds, REITs, and Internationals make sense in a Roth IRA? Earnings accumulate tax-free in a Roth IRA, but are taxable upon withdrawal at the regular income tax rate with a deductible (Traditional) IRA.

Also - what would be considered a "non-deductible contribution" to a Traditional IRA?

What am I missing here - I've had a hard day?!?

Regards,
Bill
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