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aq67sceb wrote,

Or if you are unable to make a contribution to a traditional IRA and are left with the choice of a
non-deductable IRA or a Roth IRA.

In that case it is a no-brainer.


I agree.

Also, if you're not eligible for a Roth, there may be some advantages to forgoing a non-deductible IRA and just investing for retirement in a taxable account.

If you're a LTB&H investor with mostly stocks in your retirement portfolio an IRA may actually reduce your after tax return. You pay ordinary income tax on your IRA gains (max=39.6%) whereas capital gains in a taxable account are taxed at a maximum of 20%. Of course, this only works if you keep your trading to an absolute minimum.

It also avoids all the IRA restrictions regarding early withdrawals and minimum distributions after age 70 1/2.

intercst
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