No. of Recommendations: 0
Yes, you can make the nondeductible IRA contribution by investing the $2,000 per year. Please note you must file Form 8606 with your tax return to let the IRS know that contribution was nondeductible. Also, this form informs the IRS your contribution was "after tax" and they cannot tax it again. One more thing, if you do not file Form 8606 with your return, the IRS will impose a penalty of $50 per year for failure to filing the form.

PS- It may be a good idea to show your family and beneficiaries the Form 8606 and tell them to make sure the IRS doesn't tax you again on the withdrawal. IRS may try to pull a double whammy on you... death and taxes at the same time.
Print the post  


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!
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.
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.