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Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121175  
Subject: Re: Savings question - where to put it Date: 2/21/2014 2:58 PM
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Sure, but most of the conversation was focusing on making after-tax contributions to tax-deferred accounts such as a 401k or Traditional IRA. Roth IRAs are already getting after-tax dollars, but contributions to those are bound by income limits, and I suspect the initial OP is not in a position to be eligible for Roth contributions.

This branch of the thread started with the statement below:

Another option for the OP may also be non-deductible contributions to a traditional IRA. If no other money is in traditional IRAs they can make a conversion to Roth and deal with documenting it at tax time one year at a time.

There was dissenting advice. The above statement is the back door method of contributing to a Roth IRA when one is above the income limits for Roth IRA contributions. In this case, the Roth IRA has the tax advantage as long as you do not take early distributions.

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