No. of Recommendations: 6
I think there's an error here. I'm not a tax pro, but I'm sure you are only allowed $3000 a year of IRA contributions total per year ($3500 if over, is it 50, or 55 years of age as "catch-up contribution"). If the poster is eligible for a Roth, it is clearly a better choice than the non-deductible IRA.
But the penalties for over-contributing are quite serious.
Sorry I don't have the reference to the IRA publication giving the rule, but if you go over to the tax strategies board one of the pros will provide it.
Another fine point is that you are not limited to ONE Roth or One nondeductible traditional IRA--only the TOTAL contribution per year is limited, and you can divide that contribution up any way you like.
Best wishes, Chris
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