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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75540  
Subject: Re: Nondeductible IRA Date: 2/19/2000 12:39 PM
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I should be able to figure this out but haven't had much luck so far and can't find an answer with a search of this board.
Unfortunately the only type of account for which I qualify is a regular non-deductible IRA. I have not seen much advantage to this type of account over a growth
oriented, buy and hold approach in a taxable account. Can any one provide any estimate of the magnitude of benefit of defering the tax payment over paying scant
amounts on dividend and occasional 20% cap gains as you go.
Thanks in advance

You have it correct, you won't find an answer. It depends on a lot of personnel factors and is a close call. A taxable account would be taxed at 20% capital gain and an IRA at, lets say 28+% regular income tax. The only other item to consider is that the regular IRA could be rolled to a ROTH in the future and you could leave that account to your heirs. That could be an estate planning benefit.

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