No. of Recommendations: 0
Hi intercst-

I am very interested in your answer to point #2. Here you are recommending that instead of making non-deductible contributions to an IRA one should use a tax managed index in a taxable account. Is this assuming that when you would withdraw from your IRA that you would be in the highest tax bracket? Do you know where the breakeven tax bracket would be where it would become more advantageous to make the non-deductible contributions to an IRA instead? Does your comment also take into account the cap gains tax on distributions that a tax managed index fund would realize however small they may be?

I am in this exact situation and am trying to determine which I should do. I have no idea what my future tax bracket may be in retirement. Given that, should I lean one way or the other?


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.