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is there any solid reason why somebody in there mid 30s who cannot have a roth ira, or the deductibility of a traditional ira to still contribute to an ira just not deduct it.

You report your nondeductible contributions on Form 8606, Part I, which is attached to your 1040. (One 8606 for each of you)

IMO whether you should make nondeductible traditional IRA contributions depends on how you intend to invest. If your investment mix includes assets which yield current ordinary income (short-term holdings, dividends, interest), an IRA is a good place to keep them. You'll not be taxed on these ordinary income items until retirement, and then possibly at a lower rate than during your working years.

OTOH, if you intend to invest long-term in stocks that don't pay dividends, you're probably better off holding them in a taxable account. There will be no tax until you sell, and then at a reduced rate not available for gains within an IRA.

Phil Marti
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