I apologize ahead of time if this question has been asked recently. I currently contribute to my 401(k) at work and I have a Roth IRA. Last year I made between the $95K and $110K range where you couldn't fully contribute to a Roth IRA. Is it possible for me to contribute to a non-deductible (non-traditional) IRA and have the interested and capital gains in that account grow tax free? If so, would I still be limited to the $2000 yearly max or can I contribute as much as I would like?Thanks.tony
You may contribute a total of $2K per year in contributions to a combination of Roth and traditional IRA accounts. So yes, if you exceed the income limits on a Roth, then contributions to a traditional IRA is a good idea. The earnings on the IRA investments grow tax free until they are distributed in retirement. Then you must pay ordinary income taxes on them at your then current rate--not capital gains rates.So, no you may not contribute any amount you like. You are still limited to $2K per year under current law--although there is some talk in Congress of increasing that limit.
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