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Subject:  Re: 401k max and and Roth Date:  5/4/2013  5:26 PM
Author:  gdett2 Number:  72193 of 88509


why make non-deductible contribution?

Profits and dividends are not taxed.

This is an incorrect assumption.

Everything coming out of the trad IRA will be taxed as standard income.

Dividends and capital gains in a taxable account are given better rates of taxation. Overall, your investment result is higher paying lower taxes in a taxable account over time than the higher income rates on withdrawals from trad accounts.

The benefit for trad accounts is solely in the deduction/pre-tax contributions made during working years at what is normally assumed to be a higher tax rate than after retirement.

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