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Author: rkmacdonald Big red star, 1000 posts 10+ Year Anniversary! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76111  
Subject: Re: nondeductable IRA's Date: 2/17/2001 8:12 PM
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Author: rmwinters Date: 2/17/01 5:38 PM Number: 27962
Well I'm in the un/enviable position of not being eligible for either the Roth or traditional IRA's due to income restrictions. I have already maxed out my tax deferred plans at work and am in a position to put away more money. My question is, am I better off putting the extra into a nondeductible IRA or in an after tax retail account. Although I would like the ability to have access to the money sooner, I should be able to wait for it until retirement. I'm not sure that the nondeductible IRA is truly a tax advantage. The way I see it, if I put the money in a low turnover/fee index mutual fund the advantage of tax-free compounding is not as great as it may seem. Then when I withdraw it, the earnings on the IRA will be taxed as income as apposed to the (I think considerably lower)ultra long-term capital gains rate.

Ron, I agree with you. Please see my post: http://fireboards.fool.com/Message.asp?mid=14371376

Russ


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