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jrr7: "Still, if they're eligible for a Roth, why not contribute to a Roth rather than a traditional nondeductible? A roth is nondeductible but withdrawals are tax-free. With a traditional non, earnings are taxed on withdrawal."

Not sure if this was directed at me, but I agree; if the only choice is between non-deductible regular IRA and a Roth IRA, then the Roth IRA is a no-brainer decision. High incomes can disqualify one from eligibility for a Roth IRA. The point of my earlier post was that anyone with earned income (or the spouse of such person) can have a regular IRA; the only issue is deductibility. Depending upon investe style and temperament (sp?), one could make a case that a taxable investment account (with LTCG) might be bettter than a regular IRA funded with non-deductible dollars (pay taxes at regualr income tax rates when withdrawn).

"I've heard of something called "recharacterization" which sounds like what they're looking for, but I'll await the experts' advice."

I too have heard the same, but cannot discuss details adequately to respond.

Regards, JAFO
(posted before reading all responses)
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