No. of Recommendations: 4

I'm not sure how you come to this conclussion..."I can only contribute to traditional (IRA), and even then, my contributions are not deductible, but I am contributing the max there too, since it is still better than a taxable account."

With a non-deductible TIRA, all of you gains will be taxed at you marginal rate upon withdrawl. Contrast this to a taxable account using a long term buy and hold strategy, where your gains will be taxed at favorable long term capital gains rates. Two additional drawbacks of the TIRA are 1)you will eventually be forced to take mandatory withdrawls (and pay the taxes whether you want to or not) and 2)less flexibility in accessing the funds before age 59.

I think it is a rare situation where a non-deductible TIRA is preferable to a taxable account.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.