Your thinking is correct. The advantage of the non-deductible IRA is in the speculation that you will be in a lower tax bracket when you take the money out after retiring. If you select an excellent stock that does not pay dividends and hold it for a long time, you will be taxed at long term capital gains rates. When you draw money from a non-deductible IRA, you will be taxed as ordinary income. The capital gains rate may well give you a better deal. If you die before taking the money out, and the beneficiary turns out to be someone other than your spouse, the estate tax rates can ruin an IRA. Best wishes, Chris
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