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If your AGI is too high for Roth, you can still do the nondeductible traditional contribution. However, this must be reported on Form 8606, Part I. Doing so establishes your basis in the traditional IRA so you don't get taxed again on this money when you withdraw it in retirement. You'll need to amend your return and attach the 8606, even though it doesn't change your tax.

I guess I will have to do the amended return. If memory serves, I think TurboTax will walk me through an amended return. It is nice to know the reasoning behind this too thanks for the great response.

- Homer
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