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Author: Mark0Young Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75888  
Subject: Re: Options for Higher Earners? Date: 4/5/2001 11:01 PM
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If I were in the situation where I couldn't deduct traditional IRA contributions nor contribute to a Roth IRA, I would still consider non-deductable contributions to a traditional IRA but would probably consider only tax-inefficient investments in it, such as bonds or a bond fund or a REIT. I would use a taxable account for investments that are somewhat tax efficient (e.g., individual stocks, or stock funds that tend to have low turnover) and use the taxable account for investments that would eventually be taxed at long-term capital gains rates.

I would hate to turn good long-term capital gains rates into ordinary income tax rates just by sheltering it in a non-deductable traditional IRA.

IMHO, of course.
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