No. of Recommendations: 4
Madbrain,

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.

KB
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