No. of Recommendations: 2
So, I can contribute to the existing IRA, but not deduct it.

Correct.

Which means I am taxed now, and in the future when I start to take distributions, right?

If you make a non-deductible contribtuion to your traditional IRA, you will get the contribution back without taxes. So you're not taxed twice on the contribution. (Unless, of course, you don't keep a record of your non-deductible contribution.) The earnings would be taxed when withdrawn.

There's different rules for withdrawls from Roth and traditional IRA's. In a traditional IRA, you always take a portion of your non-deductible contributions with every withdrawl. In a Roth, you take the contributions out first.

--Peter
Print the post  

Announcements

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.
Advertisement