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DarrellK writes (in part):

However, if you determine that you will not be eligible for a deduction, you should contribute to a Roth IRA instead. Contributions to a Roth IRA are always better than nondeductible traditional IRA contributions, since earnings as well as contributions can eventually be withdrawn tax-free, and the Roth has fewer restrictions on distributions in general.

I reply:

One cautionary note -- unlike the traditional IRA, eligibility to contribute to a Roth IRA is "means-tested." If you make too much money (in this sense), your only option is the traditional IRA. Eligibility phases out for married taxpayers starting with an adjusted gross income of $150,000; I think the phase-out for single taxpayers begins at $90,000. --Bob
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