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Author: mills014 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Nondeductible Traditional IRA question Date: 2/14/2007 11:57 PM
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My wife and I are ineligible for a Roth IRA due to our income and we are ineligible to contribute to a deductible traditional IRA. Is there value in contributing to a non-deductible IRA?

Pros:
1) tax deferred growth
2) Ability to eventually convert to Roth IRA once the government allows this (is this expected? are there catches?).

Cons:
1) it's not tax free
2) I don't expect to be in a lower tax bracket after retirement (I don't buy into that argument since it basically suggests failure)
3) No flexibility to use that money if a better investment arises (i.e. investment property)
4) no current tax benefits

What are folks' thoughts on this? I've been debating it for some time now.
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