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So, I can contribute to the existing IRA, but not deduct it.


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 The earnings would be taxed when withdrawn.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.

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