PixelFool asks,

I saw the following statement on the "Ten Types of IRAs" section of the tutorial on IRAs:

"There are also non-deductible IRAs (if your income is over a certain limit, and you are a participant in a qualified pension/profit sharing/retirement plan). "

I couldn't find any more in the tutorial about these
types of IRAs. Does anyone know what this statement
is talking about, and where I can find out more
information about this?

I'm looking for an investment vehicle that:

1) I can put a LARGE chunk of cash into at once;
2) I can invest in individual stocks;
3) Growth is tax-deferred; and
4) It's OK if it's "locked in" until some
age like 59 1/2 or something like that.

The above statement seemed like what I needed
but I couldn't find out any more about it...

Thanks!



You can only put $2,000/yr. ($4,000/yr. if you're married) into a "non-deductible IRA." This may or may not meet your deinition of a "LARGE chunk of cash."

If you are a long-term buy & hold (LTB&H) investor you can satisfy the 4 criteria you list with a taxable account and enjoy the advantage of paying the maximum 20% capital gains tax on any stock appreciation. However, a taxable account won't be helpful if you do much trading.

intercst